BOI FINANCE LIMITED Vs. ARVIN OXYGEN PRIVATE LIMITED

JUDGEMENT

(1.) The petitioner has filed this petition under Sections 433, 434 and 439 of the Companies Act, 1956 for winding up of the respondent Company on the ground that the respondent Company has failed to discharge its financial liability towards the petitioner.

(2.) It is the case of the petitioner that pursuant to the negotiation between the petitioner and the respondent Company, a lease agreement was entered into between the petitioner and respondent Company on 22.3.1990 under which the petitioner leased to the company and the company took on lease from the petitioner certain equipments described in Schedule-I to the Lease Agreement.

(3.) The non cancellable fixed period of lease was for 60 months commencing from 1.4.1990. The respondent Company was bound by the said fixed period of lease, however the Lease Agreement could be terminated by the petitioner prior to the expiry of the said fixed period only in the event of the defaults and breaches committed by the Company as set out in Clause-9 of the Lease Agreement. The monthly lease rental was fixed at Rs.89,535/- to be paid by the Company to the petitioner by the 1st day of every month with the provision for payment of interest at the rate of 21% for delay in payment. Clause 10.4 of the Lease Agreement entitled the petitioner to vary and revise the lease rentals with the Company being bound by such variation or revision.