Rathi Bars Ltd. vs Deepak Casting Ltd. on 29 January, 2007
10. With the above observations, the appeal was allowed and the matter was remitted back to the learned company Judge for disposal in accordance with law. Accordingly, the Company Court took up the matter in the absence of the counsel for the respondent and on consideration of the facts and circumstances of the case, expressed satisfaction that a prima facie case had been made out by the petitioner therein that the respondent therein was unable to pay the debt of the petitioner and in that view of the matter, citation was directed to be issued in the newspaper. After publication of the aforesaid citation, vide order dated 2nd December, 1997 reported as (1998) 4 Comp.LJ 519 (Delhi), the learned Company Judge directed the respondent company to be wound up. However, subsequently, the respondent company therein filed an application for recalling of the aforesaid order. The said application was heard by the learned Company Judge who, after going through facts and circumstances of the case, held vide judgment dated 18th May, 1998 reported as Rishi Pal Gupta v. S.J. Knitting and Finishing Mills Pvt. Ltd. that in view of the fact that there was an acknowledgment of debt by the respondent in its reply dated 22nd November, 1991 wherein it had transmitted the balance sheet reflecting the outstanding dues of the petitioner company to the Registrar of Companies and view of the fact that the respondent company failed to pay to the petitioner therein the said amount, the order of winding up of the respondent company was held as valid and justified.