ANDHRA BANK Vs. SILVER LINE TECHNOLOGIES LTD.

JUDGEMENT

(1.) THE petitioner -bank have invoked the provisions of Sections 433 and 434 of the Companies Act, 1956, as in spite of the receipt and service of statutory notice dated October 17, 2002, exhibits 'C' and 'D' the respondent -company failed to make the payment of the amount due and payable to the tune of Rs. 26,35,00,000 (rupees twenty six crores and thirty five lakhs only). The petitioner is a body corporate constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having its office at Andhra Bank Building, Sultan Bazar, Hydrabad -500 195, and the company above named, i.e., Silver Line Technologies Ltd., is a company duly incorporated and registered under the Companies Act, 1956 (1 of 1956), having its registered office at No. 1405, Maker Chamber -V, Nariman Point, Mumbai -400 021 (hereinafter referred to as the said 'company').

(2.) THE main objects for which the company is incorporated are, inter alia, to design, develop, export, import or deal in computers, including computer based equipments and systems related to software and computer programmes and accessories to design, develop and render technical know -how, to run education centre and coaching classes and also to assist in electronics, marketing, systems and management relating to computers, computer machinery and computer science to produce, process, dye, print and otherwise deal in textiles, cotton, etc.

(3.) BY the deed of guarantee dated September 17, 2001, duly executed at Hyderabad, by the said company in favour of the petitioner for a sum of Rs. 33.26 crores, the company in consideration of the petitioner giving credit for accommodation or granting facilities to the said company or its subsidiary company by making, opening, continuing a loan/overdraft/cash credit account or by discounting/purchasing or negotiating bills with or without security and/or/in consideration of the bank opening and giving letters of credit and/or trust receipt facilities in favour of the said company provided that the liability of the company shall not exceed on the whole, a sum of Rs. 33,26,00,000 apart from and in addition to all interests, banking, law and other costs, charges and expenses.