SPORTING & OUTDOOR AD-AGENCY PRIVATE LTD vs NETLINKBLUE MEDIA PRIVATE LIMITED

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Order reserved on : 30 April 2024 Order pronounced on : 17 May 2024 + CO.PET. 486/2009 SPORTING & OUTDOOR AD-AGENCY PRIVATE LTD. ….. Petitioner Through: Ms. Neha Gupta & Mr. Rishabh Pant, Advs. versus NETLINKBLUE MEDIA PRIVATE LIMTIED….. Respondent Through: Mr. Nitesh Jain, Mr. Vatsal Chandra & Mr. Manish Shyam Sharma, Advs. CORAM: HON’BLE MR. JUSTICE DHARMESH SHARMA O R D E R CO.APPL. 1919/2017
1. This application has been moved on behalf of the Official Liquidator under Section 446(2) of the Companies Act, 1956 seeking recovery of a principal amount of Rs. 66,65,685/- along with interest @18% per annum as well as administrative expenses from the non-applicant/respondent – M/s. Store One Retail Ltd.

2. Briefly stated, this application comes for disposal in the present company petition bearing CO.PET. 486/2009, which was admitted vide order dated 10.12.2010, whereby the Official Liquidator attached with this Court was appointed as the Provisional Liquidator to the company (in liquidation) with the direction to take charge over the assets, books of accounts and records of the company. Thereafter, notices were issued to the Ex-Directors of the company (in

liquidation) to file their Statement of Affairs and also for them to record their statements under Rule 130 of the Companies (Court) Rules, 1959.

3. It is stated that a Statement of Affairs was filed by one the Ex-directors, namely Sh. SudhakaranVadakepate, on 18.01.2010 and 11.04.2011, wherein it was brought to the fore that the non-applicant/respondent was indebted to the company (in liquidation) to the tune of Rs. 66,65,685/-. Consequently, the Official Liquidator sent several demand/letters under Section 456 of the Companies Act, 1956, to the non-applicant/respondent seeking to recover the said amount. In response thereto, the respondent vide letter dated 22.06.2015 stated that the services rendered by the company (in liquidation) were unsatisfactory and although several deficiencies were pointed out to them, the company (in liquidation) took no steps to remove such deficiencies, or rectify and improve the services rendered.

4. The said stand raised by the non-applicant/respondent, was refuted by the Ex-Director of the company (in liquidation), who appeared before the Official Liquidator on 11.08.2015. The Ex-director further submitted that the respondent had neither ever raised any concerns regarding the services rendered nor did they communicate their dissatisfaction of the work carried out by the company (in liquidation). It is stated that various letters were sent to the non-applicant/respondent demanding payment of the above-noted amount on 04.06.2009 and 13.06.2009 as also emails dated 10.12.2008 and 22.12.2008 but in vain. Hence, the present the present

winding up proceedings were instituted under Section 446 of the Companies Act, 1956.

5. It is pertinent to mention that this Court vide order dated 04.07.2023 has already held that the application is not barred by limitation, which has remained unchallenged and thus has attained finality.

6. The non-applicant/respondent has filed a reply to the present application dated 07.08.2018, wherein it has been stated that the claim of the applicant is not supported by any documents or material particulars. It has been submitted on behalf of the non-applicant/respondent that the services rendered by the applicant company were deficient and not to the satisfaction of the non-applicant/respondent, and such facts were brought to the notice of the applicant company on various occasions. However, no steps were taken to duly rectify the defects in the services rendered by the applicant company.

7. Having heard the submissions advanced by the learned counsels for the parties at the Bar, as also considering the record of the present matter, it is the opinion of this Court that the contentions raised by the parties constitute triable issues which could only be decided after the parties lead evidence thereupon.

8. Accordingly, this matter to be placed before the Joint Registrar (Judicial) for framing of issues and the recording of evidence of the parties on 27.05.2024.

DHARMESH SHARMA, J. MAY 17, 2024 Sadiq