IFCI FACTORS LTD Vs. KRISH INTERNATIONAL (P) LTD

JUDGEMENT

(1.) IFCI Factors Ltd. ('IFL') has filed this petition under Section 439 read with Sections 433(e) and 434 read with Section 439 of the Companies Act, 1956 ('Act') seeking the winding up of the Respondent, Krish International Pvt. Ltd. ('KIPL').

(2.) The background facts are that in 2010, KIPL approached IFL to avail of sales bill factoring facility to the tune of Rs. 5,00,00,000. In the petition, the nature of a factoring transaction is explained as under:

(3.) Pursuant to the negotiations between the parties, an agreement of factoring of receivables (hereafter 'factoring agreement') was executed on 18th February 2010. Mr. Alok Aggarwal, the Managing Director ('MD') of KIPL, gave an undertaking to the effect, inter alia, that the cheques issued by KIPL would be honoured on presentation. Additionally, Mr. Aggarwal also executed a guarantee deed, by which he guaranteed repayment of IFL's dues under the factoring agreement. A separate guarantee deed was executed by Mrs. Kiran Aggarwal, Director of KIPL, whereby she guaranteed payment of IFL's dues under the factoring agreement. A letter dated 18th February 2010 was issued by KIPL along with a promissory note. There was also a notice of assignment of debts dated 16th February 2010 issued by KIPL and counter-signed by KRIL. This was accepted by KRIL by a separate letter dated 17th February 2010 written to IFL.