UCO BANK Vs. ELECTROTHERM (INDIA) LTD.

JUDGEMENT

(1.) THE petitioner, a bank has taken out present petition under Sections and of Companies Act, 1956 (hereinafter referred to as the 'Act') against the respondent company and has prayed for below mentioned relief/directions: -

(2.) IN such background of facts the petitioner bank has alleged that the respondent company has failed as well as neglected to make repayment of the loan amount. It is also claimed that the said fact coupled with the fact that the cheque issued by the respondent company was dishonoured when deposited for clearance, establishes that the respondent company has lost its capacity to, discharge its debts and fulfil its financial obligation. On such premise the bank has claimed that the respondent company deserves to be wound up.

(3.) MR . Desai, learned Counsel for the petitioner bank heavily relied on the factual aspects mentioned in the memo of petition and the above referred two communications addressed by the respondent company as well as further admission by the respondent company in para 5 of its reply affidavit, and he submitted that the respondent company is unable to pay its debts and has lost its substratum as well as capacity to discharge its financial obligation. He also submitted that the failure to pay is coupled with neglect to pay and that therefore various figures about alleged turnover of the respondent company and the so called profit allegedly earned by the respondent company are not of any avail or assistance in face of the fact that after seeking extension of time on two occasions the respondent company has not paid and could not pay the due and payable amount. He submitted that in view of the fact that the debt is not disputed and the fact that the due amount has not been repaid, the petition deserves to be admitted and the petitioner company is entitled for order of admissions of the petition.