BANARAS BEADS LTD Vs. SHRISTI CARRIERS PVT LTD

JUDGEMENT

(1.) The petitioner, Banaras Beads Ltd., filed this petition for winding up Shrishti Carriers Private Limited having its registered office at 24/56 Birhana Road, Kanpur (hereinafter referred to as "the company").

(2.) The version of the petitioner is that it entered into an agreement on May 17, 1995, with the respondent-company whereby it agreed to make available the required funds to the company for subscription to the rights issue of 12 per cent. fully convertible debentures of Shrishti Videocorp Ltd. and the company had agreed to repay the petitioners the fund so arranged by it within 180 days. As the nature of the agreement is relevant it is quoted below :

(3.) The company at the time of execution of the agreement had handed over to the petitioner a post-dated cheque No. 460731 dated November 18, 1995 for Rs. 1 crore drawn on the State Bank of India, Bhikaji Cama Place Branch, New Delhi, towards repayment of the amount which the petitioner was required to arrange under the aforesaid agreement. The petitioner arranged the sum of Rs. 1,00,02,000 (one crore two lakhs) for the company to enable it to subscribe to 166700 fully convertible debentures of Shrishti Videocorp Ltd. The petitioner presented the cheque to the bank for encashment on November 21, 1995, but the same was returned unpaid by the bank with the remark "Effects not yet cleared. Please present again". The cheque was again presented to the bank on November 24, 1995, for encashment. This time it was again dishonoured by the State Bank of India with the remark "insufficiency of funds". It sent a message dated November 27, 1995, to the company. The company by its fax message on November 27, 1995, regretted its inability to pay the dues.