ORDER 

KRISHNA SARAN SHRIVASTAV, J. - This is an application for winding up the respondent company under section 433 (e) and (f) and section 439 (b) and (c) of the Companies Act, 1956. 

2. The case of the applicant company in brief is that it has rendered the service of supplying power through a 125 KVA diesel generator set for one month against an advance of Rs. 50,000 paid on 30.8.1996. An agreement was also reduced into writing. The petitioner company has, submitted the bills from 1.9.1996 to 30.9.1996 amounting to Rs. 1,14,260 and after deducting the advance of Rs. 50,000, the petitioner company had to receive an amount of Rs. 64,260. This amount was not repaid in spite of demands. Therefore, the petitioner company is also entitled to claim interest on the principal amount. In answer to the statutory notice, the respondent company, vide letter, dated 26.12.1997, while admitting the liability, stated that it was sincerely trying to make the repayment. 

3. The respondent company was noticed. But, in the absence of representation, the petition was admitted on 30.3.1998. Advertisement was ordered. In spite of advertisement in the newspapers, there was no representation on behalf of the respondent company, and, therefore, it was ordered to be proceeded ex parte. The petitioner company was directed to file an affidavit by way of evidence. 

4. From the affidavit of M. A. Khan, the proprietor of the petitioner company, it appears that the respondent company had entered into an agreement with the petitioner on 10.8.1996 for supply of power through 125 KVA diesel generator set for one month against an advance payment of Rs. 50,000. The respondent company utilised the said machine for one month and bills were raised from 1.9.1996 to 30.9.1996 amounting to Rs.1,14,260. Invoices were also raised from time to time. After adjusting the amount of advance of Rs. 50,000, an amount of Rs. 64,260 was due from the respondent company. The accounts were sent to the respondent company vide Exh. A-10. The respondent company, vide letter, dated 8.10.1996 has accepted the correctness of the amount to the extent of Rs. 64,260. The letter is at Exh. A-11 in which the liability has been accepted. The petitioner company is also entitled to claim interest at the rate of 20% per annum for five months amounting to Rs. 4,819.50. I also get from the affidavit of M. A. Khan that a notice under section 434 of the Companies Act was served on the respondent company which is at Exh. A-15. In reply notice, Exh. A-16, the respondent company has stated that they are trying to pay the balance amount. 

5. The statement made in the affidavit by M. A. Khan is supported by the aforementioned documents. There is no evidence in rebuttal. Relying on he affidavit of M. A. Khan, I hold that the respondent company is indebted to the petitioner company at least to the extent of Rs. 64,260 which amount was not repaid in spite of statutory notice and, therefore, prima facie, it appears that the respondent company has become commercially insolvent. 

6. It is, therefore, ordered that the respondent company be wound up under the provisions of the Companies Act, that the official liquidator shall forthwith take charge of all the properties and effects of the respondent company, that the official liquidator shall cause a sealed copy of this order to be served on the company by prepaid registered post, that the petitioner do advertise within 14 days from the date of this order a notice in the prescribed form of making of this order in one issue of the daily 'Indian Express' and another issue of 'Andhra Jyothi', that the petitioner do serve a certified copy of this order to the Registrar of Companies not later than a month from the date of its receipt. The costs of the petition shall be taxed and paid out of the assets of the respondent company. The petitioner shall deposit a sum of Rs. 5,000 with the official liquidator to meet the initial expenditure. For filing proof of publication, call on 22.9.1998.