G RAGHAVAN Vs. UPASANA FINANCE LIMITED

JUDGEMENT

(1.) THESE two appeals challenge the common order of dismissal made by the learned single Judge of this Court made in Application No.191 of 2009 seeking to set aside the Insolvency notice dated 11.3.2009, while application No.192 of 2009 is to declare the said notice as invalid.

(2.) THESE two applications were filed by the appellant under the following circumstances.The respondent/creditor filed the Insolvency notice No.12 of 2009 on the strength of a decree made in his favour in C.S.No,650 of 1998 whereby a decree for payment of Rs.12, 991,422/- along with interest was passed against the appellant and three others. The said decree was pursuant to a memorandum of compromise entered into between the parties and filed into Court. According to the memorandum, all the defendants agreed to pay the said sum with interest at the rate of 30% per annum. It was also agreed that the amount were to be paid in instalments commencing from August 1999 to 28.4.2001. If there was any default, an additional interest was payable and if four instalments are not paid, the petitioning creditor would be at liberty to execute the entire decree and also could repossess and sell the assets given on hire purchase. The criminal case filed under section 138 of the Negotiable Instrument Act was agreed to be withdrawn on receipt of the 17th instalments. Since the terms of the memo was not adhered to by the defendants including the appellant/applicant, the Insolvency notice was issued. On service of notice, the appellant filed the above said applications.

(3.) AFTER hearing the learned counsel for the appellant and looking into the materials available, in particular, the order under challenge, the Court is of the considered opinion that no case is made out even for admission of the appeals.