HDFC BANK LIMITED Vs. NEELAM INDIA PVT LTD

JUDGEMENT

(1.) This is a petition filed by the petitioner bank under Section 433(e), 434 and 439 of the Companies Act, 1956 for winding up M/s. Neelam India Pvt. Ltd. The plea of the petitioner is that working capital to the extent of Rs.150 lakh being an inventory finance was sanctioned to M/s. Silver Line Motors Pvt. Ltd. In order to avail the inventory finance, M/s. Silverline Motors Pvt. Ltd. submitted various documents including a letter of continuing guarantee dated 30th November, 2005 by the respondent in favor of the petitioner.

(2.) The petitioner has produced the letter of continuing guarantee alleged to be signed on behalf of the respondent by Neelam Sharma as Director of respondent. The letter of continuing guarantee though signed on behalf of respondent has various blanks regarding the facilities granted to the borrower in respect of which the alleged guarantee was executed; the principal amount granted to the borrower towards the said credit facilities; the Bank branch at which it was payable; the date on which it was signed. In the beginning of this letter, the date is given as 30th November, 2005, in the end of the letter of continuing guarantee no date is given. The letter of continuing guarantee also has blanks as pursuant to which resolution of the Board the seal of the respondent company was affixed and in presence of which persons.

(3.) According to the petitioner, the borrower, M/s.Silverline Motors Pvt. Ltd., failed to maintain financial discipline, consequently, was declared as NPA (Non Performing Asset) on 24th January, 2005 and in accordance with the guidelines of Reserve Bank of India. It is also alleged by the petitioner bank that M/s.Silverline Motors Pvt. Ltd. agreed to pay the overdue amount and issued post-dated cheques to the bank, however, these cheques were subsequently replaced, the details of which are given in para 3 of the petition. Later on payment of these cheques was stopped by the drawer.