N POONGODI Vs. TATA FINANCE LIMITED

JUDGEMENT

(1.) THE Above Original Side Appeal has been filed against the order of the learned Single Judge dated 20-10-2004, made in Application No. 91/2004 in I. N. No. 183/2003 in and by which the debtors were asked to pay Rs. 5 lakhs out of Rs. 14 lakhs due on or before 29-10-2004.

(2.) HEARD Mr. R. Krishnamurthy, learned senior counsel for appellants and Mr. Vasudevan for respondent.

(3.) THE respondent herein, namely, M/s. Tata Finance limited obtained an award for Rs. 10,89,782/- as compensation on arrears of monthly hire charges being contract balance at 18 per cent per annum on the said principal amount of Rs. 6,97,540/- with effect from 18-10-2000 and also Rs. 17,250/- towards arbitration cost and fees by an arbitration award dated 24-7-2001. It is their claim that the said debtors have not paid any amount towards the award dated 24-7-2001 to the petitioning creditor. According to the petitioning creditor, as on 10-11-2003, a sum of Rs. 14,91,615-42 was due from the debtors jointly and severally. It is also stated that there is no application filed to set aside the award dated 24-7-2001 to the knowledge of the petitioning creditors. Therefore, the petitioning creditor prayed to issue Insolvency Notice to the debtors under Section 9 (2) of Presidency Town Insolvency Act and Form No. 14 (a) of the Insolvency Rules. Questioning the said Insolvency Notice, the debtors/applicants made an Application No. 91/2004 before the Insolvency Court to set aside the Insolvency Notice No. 183/2003 dated 11-12-2003 issued under Section 9 (2) of the Presidency Towns Insolvency Act,1909 and also to condone the delay of 2 days in filing the said application. In the affidavit filed in support of the said application, it is stated that no money was due and payable by them to the petitioning creditor with regard to higher purchase transaction relating to the vehicle Y. 01. E. 27779, that the vehicle in question was purchased at Chennai and it was seized by the petitioning creditors at Chennai and that if at all any cause of action, it should be at Chennai having jurisdiction of this Court, but the petitioning creditor invoked the jurisdiction at Mumbai. Hence, any award/decree is in executable either at Mumbai or at Chennai. The so-called ex parte award is also in executable in any Court of law.