BHAJAN SINGH SAMRA Vs. BHAJAN SINGH SAMRA

JUDGEMENT

(1.) Present petition has been filed under Section 433(e) read with Sections 434 and 439 of the Companies Act, 1956 (for short 'Act') stating that the respondent-company is unable to pay its debt allegedly amounting to 50,00,000/- as well as interest.

(2.) The facts as stated in the petition are that in the year 1994, petitioner was approached by the respondent-company's management for lending money to it at an attractive rate of interest. According to the petitioner, as he was looking for an opportunity to invest in India, he agreed to give an interest bearing loan of 50,00,000/- to the respondent-company. The petitioner issued a cheque/draft of 50,00,000/- dated 05 th December, 1994 from his account in Allied Irish Bank payable at Bombay in favour of the respondent-company. The said cheque was handed over to the respondent-company's management on 08 th December, 1994 and a receipt for the said cheque was issued by the Accounts officer of the respondent-company. The receipt dated 08 th December, 1994 issued by the respondent-company is reproduced hereinbelow:-

(3.) It is stated in the petition that the aforesaid loan was given for a period of two years with interest @ 22% per annum. Upon petitioner's request for redemption of his loan with interest in 1996, respondentcompany instead of redeeming the loan, offered to convert it into equity shares in petitioner's favour and also agreed to appoint petitioner as an Executive Director.