INDIA CEMENTS CAPITAL LTD Vs. RATNAJEET POLYCON LTD

JUDGEMENT

(1.) The petitioner under its original name and style M/s.Aruna Sugars Finance Ltd. is stated to have been engaged in the business of extending financial facilities to prospective customers with a good reputation in the market. The name was changed to the present description in the petition subsequently and notified vide notification dated 24.06.1985.

(2.) The respondent is stated to have approached the petitioner to extend the lease financial facility of Rs.18,00,000/- towards acquisition of certain machineries and consequently, a lease agreement dated 20.07.1994 was entered into inter se the parties, providing for a repayment over a period of 60 months with quarterly lease rentals falling due every quarter for a total lease rental of a sum of Rs.25,90,250/- with quarterly lease rental of Rs.1,29,512.50.

(3.) The petitioner alleges that from the fifth quarterly instalment payable, there was a default and the payments remained irregular, position which is stated not to have been remedied despite various communications. It is the claim of the petitioner that as on 29.04.2014, the total amount towards lease rental stood at Rs.16,33,685/- as outstanding, apart from lease compensation charges at 36% for belated payments of Rs.1,03,15,599/-.