16,80,468/ sic for Rs.
2 lakhs on 11 11 2002 and the petitioning creditor failed to present any suit within three months thereof as per direction of the Company Judge?
It is number in dispute that at the foot of each credit bill an officer of the respondent companypany had put its signatures as a token of acceptance.
2,30,468/ Rupees two lakhs thirty thousand four hundred and sixty eight only , drawn on State Bank of India, Commercial Branch, Secunderabad, in favour of the petitioner companypany in Court today.
097852, dt.
Appellant filed a winding up petition under Section 433 e and 433 f read with Section 439 of the Companies Act on 23.01.2004.
Appellant is said to have adjusted the amount first towards interest at the stipulated rate and balance against the principal amount.
Bank Dated Amount Rs.
This amount carries interest 2 per month.
Against the above payment, the Company representative Sri Jagadish Prasad agreed for supply of Three Tanker loads including the existing One Tanker load which is already supplying.
15, 80,460/ , stating In the circumstances, we advice you kindly withdraw the legal numberice dated 23rd December, 2003 so as to enable us to arrange payment for full and final settlement of your dues amounting to of Rs.
An interim order was passed on 17.02.2004 directing Both the learned companynsel agree that the matter can be settled out of Court having regard to the companymercial relations between petitioner and respondent for long duration.
In its letter dated 8.09.2003, the respondent stated We have accounted your payments against the interest and balances against Castor Oil Supplies approximately.
Aggrieved by and dissatisfied therewith, the respondent preferred an appeal.
Sri V.S. Raju, learned companynsel for respondent has given a Demand Draft bearing No.
On the basis thereof, a demand for a sum of Rs.
06.01.2003.
14.06.2004 for an amount of Rs.
According to it, the total sum due was Rs.
64, 58,457/ upto November, 2002.
In view of the numberice served by the Income Tax Department, we companyld number arrange any payment directly to your companypany.
As per the numberice, we are directed to pay the amounts due to you on account of Castor Oil supplied directly to the department in view of your dues to the department to an extent of Rs.
69, 75,134/ .
As the said agreement between the parties arrived at in the said meeting was number adhered to, on 23.12.2003 a legal numberice under Section 434 of the Companies Act, 1956 was served on the respondent, stating My client states that as per the invoices raised by it, you are laible to pay interest at 2 per month if payment is number paid after availing the credit period It was further stated In view of the above, my client calls upon you to pay an amount of Rs.
The Representatives of NATL Technologies Ltd. have agreed to arrange payment for the values of 2 truck loads of Castor Oil in the month of December.
In the circumstances, we have number intentionally defaulted in making arrangements for the payment of your dues on account of Castor Oil Supplies from time to time.
25,43,737/ .
By reason of the impugned judgment, the Division Bench has allowed the said appeal.
As despite demand the amount due and owed to it was number paid by the respondent, a legal numberice was served upon it claiming interest on the said sum.
It was stated that the appellant had appropriated account of payments made by it against the interest and balance, if any, against the principal amount.
The said legal numberice was replied by the respondents, stating We have received a legal numberice from Sri Rao Raghunandan, Advocate dt.
16,80,468/ within two months from the date of this letter.
65,15,947/ with further interest thereon at 2 per month within three weeks from the date of receipt of this numberice In its reply to the said legal numberice, the respondent did number deny or dispute demand of interest.
Learned companynsel for petitioner has received the Demand Drafts, without prejudice to the claim of the petitioner for interest and seeks time for getting instructions from his client regarding cheques.
8 lakhs was paid in between the period 19.04.2003 to 11.07.2003.
2,00,000/ per week to the appellant beginning from April, 2003.
It is on that assurance the appellant is said to have agreed to restore supply of Castor Oil provided it deposited 50 of the outstanding dues and remaining 50 at the rate of Rs.
The invoices of the credit bills attached with each of the supply companytained a clause relating to payment of interest in the following terms amount must be paid within seven days or you are liable to pay 2 interest per month.
216948, 216949, 216950, 216951, 216952 dt.25.07.2004, 25.08.2004, 25.09.2004, 25.10.2004 and 25.11.2004 respectively, each for an amount of Rs.
Also in principle agreed to companypensate Vijaya Industries for the delay in payment on account of earlier supplies after clearing the entire old dues.
We request you kindly to obtain the clearance, so as to enable us to arrange payment of the outstanding amount due to you amounting to Rs.
Post on 09.07.2004.
Admittedly, it supplied Castor Oil to the respondent valued at Rs.
2,00,000/ per week.
64,58,457/ together with future interest at the rate of 2 per month was raised.
49,99,000/ had been paid by the respondent.
As evidently, the appellant refused to make further supplies, a meeting took place, the minutes whereof reads, thus As per the discussion regarding the old outstanding and for the companytinuity of the Business at present, Vijaya Industries is rotataing, One Tanker load for the payment arrangement towards old outstanding.
074013 Allahabad Bank 09.08.02 2,00,000/ 100313 S.B.H. 09.09.02 3,34,868/ 5,34,868/ After adjusting the above amounts and our earlier payment of Rs.10.00 lakhs, the balance amount due to your companypany on account of oil supplies is only Rs.
Accordingly, the balance upto 31st March, 2003 stands Rs.
10.00 lakhs towards Castor Oil Supplies to our plant, we have received a numberice under Section 226 3 of the Income Tax, 1961 from the Income Tax Department.
89,13,589/ .
2,30,000/ Rupees two lakhs thirty thousand only , and another cheque bearing No.
Respondent in its companynter affidavit before the learned Company Judge denied its liability to pay its interest for the first time, stating that it was number liable to pay any interest number it entered into any agreement in companynection therewith.
On such account being taken the balance of Rs.
4,69,480 as directed by the Company Judge to Rs 2 lakhs in companypliance whereof the Company had duly deposited Rs.
The learned Single Judge, in view of the stand taken by the parties, while admitting the companypany petition by an order dated 10.11.2004 held that a prima facie case has been made out therefor having regard to the companyrespondences passed between the parties, the credit bills and also the minutes of the meeting.
You are aware that after making payment of Rs.
216953 dt.25.12.2004 for an amount of Rs.
Appellant is a small scale unit registered with the District Industries Centre.
Even that amount was number paid.
A sum of Rs.
Appellant in its rejoinder companytended that the credit bills mentioned that the respondent was liable to pay interest at the rate of 2 per month on delayed payment.
A sum of Rs.
Subsequently, we have paid by way of cheques to Income Tax Officer Ward 8 3 on account of supply of castor oil as detailed below Cheque No.
This matter was brought to your numberice and also advised you to obtain a direction from the Income Tax Department to pay the dues directly to your companypany.
B. SINHA, J Leave granted.
27,40,882/ .
Basing on the companyvenience and as per the discussions from time to time NATL have agreed to square up the old outstandings and bring in to the system for the rotation.
2,00,000/ Rupees two lakhs only drawn on Punjab National Bank, Bank Street, Hyderabad, and six post dated cheques five cheques bearing Nos.
