MAGMA LEASING LIMITED Vs. HCL INFOSYSTEMS LIMITED

JUDGEMENT

(1.) BY filing this appeal the appellant challenges legality of the order dated 10th July, 2006 passed by the learned Company Judge in C. P. No. 105/2005, holding that some of the claims of the appellant for payment of interest would be barred by limitation and some other claims would be within limitation. The direction issued by the learned Company Judge to the parties to carry out fresh calculations and to file a chart calculating interest payable under Clause 4 of the Agreement dated 11/12th November, 1998 is also under challenge in this appeal.

(2.) IN order to appreciate the contentions of the parties it is necessary to place on record a few facts leading to the filing of the present appeal.

(3.) THE appellant herein filed a Company Petition under Section 433 read with Section 434 of the Companies Act, 1956 for winding up of the respondent company on the ground that the respondent had failed to make payment of lease rentals and also interest accrued thereon. On 25th september, 1998 the respondent entered into an Agreement for Rental and maintenance Service with Bharat Heavy electricals Limited (BHEL forshort ). In the said agreement it was also stipulated that the respondent agreed to supply, install and maintain various hardwares being computer accessories and peripherals; at various establishments of BHEL, for which respondent had ente'red into a separate agreement with the BHEL for different locations. After entering into the aforesaid agreements, the respondent approached the appellant for financing the aforesaid transaction. The appellant agreed to p'rovide finance to the respondent which was repayable in 20 quarterly instalments covering a period of five years from the date of installation of. computers at each of the locations in respect whereof the respondent had entered into rental and maintenance agreements with BHEL. Agreement dated 11/12th November, 1998 entered into between the HCL Infosystems Limited, the respondent herein, and the appellant is placed on record. The said agreement relates to the Rental and maintenance Service. Agreement executed on 21st October, 1998 by and between the respondent and the BHEL. Clause 4 of the agreement dated 11/12th november, 1998 reads as follows: