CASE STUDY ON

SHAKTHI AGENCIES vs MANSHUK

BHAI INDUSTRIES LTD

PRESENTED BY :
SHALINI
SHARADA P
SHILPA G
 INTRODUCTION

 In Shakti Agencies Vs Manshuk Bhai Industries

Ltd.(2007),74 SCL 332, decided petitioner firm filed a
winding up petition against the respondent company for
the recovery of the debts which was disputed by the
respondent company.
 The petition was dismissed.
 The instant case was of bona fide disputed debt.
 Even from the petition for winding up, it was evident that
for the payment of 10,50,000, the petitioner firm agreed to
purchase shares of respondent company.
 Continued…….

 In additional field by the respondent company , it

was stated that application form was signed by the
proprietor of petitioner with a sole view to settle the
outstanding accounts .
 The respondent proceeded to allot 70,000 shares to
the petitioner .
 The respondent disputed the debt and it could not be
held that it neglected to pay the debt within the
meaning of section 433 (1) (a).
 JUGDMENTS OF CASE

 Meaningful questions that emerges in this petition is

whether winding up petition is a legitimate means of
seeking to enforce payment of a debt which is bone
fidely disputed by the company .
 The respondent company has raised various
contentions against the winding up petition, which
are highlighted.
 The petitioner firm filed rejoined to the reply
reiterating the facts stated in winding up petition.
 The principles on which court should act in
disposing winding up petition may be deduced.
 Upon failure to honour the outstanding dues, the
petitioner firm gave a statutory notice to the
respondent company under section 434 of the
company Act 1956 demanding due payments
towards principal amount with interest but the
respondent company failed to make payment with
statutory period.
 Conclusion……

 Bearing these principle in mind if I examine the facts

of this case. I find that this is case of bona fide
dispute debt.
 Even from the petition for winding up it is evident
that for the payment of Rs 1050000/- the petitioner
firm agreed to purchase share of the respondednt
company.