SURESH MANHERLAL MEHTA Vs. ICDS LIMITED

JUDGEMENT

(1.) THIS appeal is filed against an order passed by the learned Single Judge on November 6, 2001 in Insolvency Petition No. 6 of 2001. By the said order, the petition filed by the petitioning creditor for adjudicating the appellant-debtor as an insolvent was allowed, and the prayers made in the petition were granted.

(2.) THE petitioning creditor approached this Court by filing Insolvency Petition No. 6 of 2001 for an order of adjudication against the appellant-debtor, inter alia stating therein that he was indebted to the petitioning creditor in the sum of Rs. 38,54,087. 32 along with interest of Rs. 24,41,675. 00 at the rate of 18% per annum from August 29, 2000 until payment under Insolvency Notice No. N/82 of 2000 dated September 26, 2000. An Award was obtained by the petitioning-creditor on February 24, 1999 in Arbitration proceedings No. A. P. 120 of 1998 in accordance with the Arbitration and Conciliation Act, 1996 between I. C. D. S. Limited and Star Precision Electronics (I) Ltd. and another. Insolvency Notice No. N/82 of 2000 was issued by this Court on September 26, 2000 calling upon the debtor to pay the amount of Award, which was served upon the debtor on October 5, 2000. As per the said notice, the debtor was required to pay to the petitioning creditor the amount claimed in the notice or to take proceedings for setting aside the notice within a period of 35 days from the date of service of the notice. The debtor, however, failed either to pay the amount or to take any proceeding, and thereby committed an act of insolvency.

(3.) AT a belated stage, however, the debtor took out Notice of Motion No. 117 of 2000 on November 21, 2000 for setting aside the notice. The petitioning creditor filed Insolvency Petition on January 29, 2001 for the following reliefs: