HC Dismisses Winding-up Plea Over Triable Dispute of Overcharging | Directs Petitioner to Approach Commercial Court

Case Details: Newage Scaffoldings (P.) Ltd. v. Paramount Infraventure (P.) Ltd. - [2024] 162 taxmann.com 848 (Delhi)

Judiciary and Counsel Details

• • Dharmesh Sharma, J.
  • R.K. Sahni & Ms Pooja Handa, Advs. for the Petitioner.
  • Akhil Krishan Maggu, Adv. for the Respondent.

Facts of the Case

In the instant case, the respondent company placed an order for certain construction equipment and steel scaffolding by way of written purchase orders, and such goods were duly supplied by petitioner to respondent company at required site.

Thereafter, petitioner raised certain bills/invoices against said purchase orders for an amount of Rs. 17.67 lakh. Despite repeated reminders, respondent company failed to discharge its liability, and consequently, petitioner was constrained to serve a statutory legal notice, calling upon respondent company to discharge its liability.

The respondent company failed to settle the outstanding amount, leading to the initiation of present winding-up proceedings. Notably, in response to the legal notice served by the petitioner, the respondent, through their counsel, argued that the transactions concerning equipment supply and payments constituted a running account between the parties.

It was contended that orders totaling over Rs. 58 lakhs had been placed, and contrary to the petitioner’s claims, the respondent asserted that the petitioner had consistently overcharged them. In fact, the respondent asserted that the petitioner owed them a refund of 25% of the total billed amount, amounting to Rs. 14.62 lakhs, due to alleged overcharging.

Therefore, it was stated on behalf of respondent company that debt sated to be payable and claimed by petitioner was disputed, and even if such debt was admitted, respondent had a genuine counter claim to amount claimed by petitioner.

High Court Held

The High Court observed that Company Court cannot enter into an adjudication of disputed facts, wherein a finding on facts is to be recorded as regards whether liability stated is actually due and payable, and such a case would be subject matter of a commercial suit.

Since the contentions raised by both parties constitute triable issues, particularly regarding the existence of a payable debt, the High Court held that the instant company petition was deemed to be dismissed as withdrawn. As a result, the petitioner was granted the liberty to institute proceedings before the appropriate Commercial Court. Furthermore, the petitioner would seek condonation of delay, in accordance with the law, for the period of time which had been spent during the pendency of these winding-up proceedings.