RANJANA KUMAR Vs. INDIAN DYESTUFF INDUSTRIES LTD

JUDGEMENT

(1.) THE petitioners have prayed for an order of winding up of the respondent-company under Sections 433 and 434 of the Companies Act, 1956 ('the Act'), alleging failure and inability on the part of the company to pay the debts due to the petitioners being the redemption amount of the debentures held by the petitioners. The petitioners were holding two series of debentures of the respondent-company, one being 1,98,687--19. 5 per cent debentures of the face value of Rs. 100 at a premium of Rs. 5 and the other being 2,00,000--14 per cent debentures of the face value of Rs. 100 at a premium of Rs. 5.

(2.) IT is alleged by the petitioners that the respondent-company failed to pay the redemption value of the shares on maturity. There is correspondence on record to indicate that the petitioners extended the time for payment from time to time and even conditionally agreed to a reduction in the interest rate. It is the contention of the petitioners that despite accommodation, the respondent-company could not pay amounts aggregating to Rs. 9,63,582. 65 under the first series of debentures and Rs. 1,70,25,975 under the second series of debentures, which are still outstanding and payable.

(3.) HOWEVER, the genuine attempts on the part of the company to pay the redemption value of the debentures is apparent from the petition itself. The respondent-company paid 50 per cent of the redemption amount of the first series debentures in the year 1997. Under aletter dated 25-8-1997, certain instalments were fixed and between August and December, 1998, an amount to Rs. 25 lakhs was paid. Further instalments of Rs. 24. 29 lakhs, Rs. 10 lakhs and Rs. 49. 31 lakhs were paid in 1999.