CHINATRUST COMMERCIAL BANK Vs. LILIPUT KIDSWEAR LIMITED

JUDGEMENT

(1.) The present petition has been filed by the petitioner bank under Section 433(e) of the Companies Act, 1956, inter alia, praying for winding up of the respondent company as the respondent has failed and neglected to pay the amounts due and payable to the petitioner bank. The petitioner has also filed an application (CA No.2333/2013) praying for winding up the respondent company.

(2.) Briefly stated, the respondent had approached the petitioner bank for financial assistance by way of a Working Capital Demand facility of a sum of Rs. 15 crores. The petitioner bank agreed to grant such facility and after obtaining the necessary corporate authority, the loan documents were duly executed between the respondent company and the petitioner bank. It is stated that an aggregate sum of Rs. 15 crores was disbursed by the petitioner bank to the respondent in the month of October, 2011 as under:- <FRM>JUDGEMENT_12_ILRDLH24_2014_1.html</FRM>

(3.) It is alleged that the respondent was irregular in making payments of interest and also failed to repay the loans on the respective due dates. The petitioner bank served a legal notice dated 09.01.2012 calling upon the respondent to pay a sum of Rs. 15 crores alongwith interest @ 13.50% p.a. w.e.f. 08.01.2012 and other charges etc. It is stated that subsequent to the said notice, the respondent company paid the interest due till the month of November, 2011 but failed to repay the loans as well as the interest for the period subsequent to November, 2011. The cheque for a sum of Rs. 15 crores, which had been earlier furnished by the respondent company to the petitioner, was also dishonoured on the presentation.