KOTAK MAHINDRA FINANCE LTD Vs. PARASRAMPURIA SYNTHETICS LTD

JUDGEMENT

(1.) THIS petition has been filed with a prayer for appointment of the Court Receiver, High Court, Bombay, as the Receiver of the leased equipment described in the Schedule being Exhibit A to the petition. Prayer for injunction is also made.

(2.) THE petitioner is a company registered under the provisions of the Companies Act, 1956 and carries on business inter alia, of leasing, having its registered office, at 5-C/II, Mittal Court, 224, Nariman Point, Mumbai 400 021. The respondent is also a company registered under the provisions of the Companies Act, 1956 and carries on business interalia, of manufacturing and selling polyester filament yarn, polyester chips and cotton yarn. In the title of the petition, the registered officer of the respondent company is given at Rajasthan. It is also stated that the Mumbai Office of the respondent company is at Regent Chambers 10th Floor, 208, Nariman Point, Mumbai 400 021. They also have an office at Delhi at 103, Surya Mansion, 1, Kaushalya Park, Hauz Khas, New Delhi 110 016.

(3.) THE petitioner repeatedly called upon the respondent to pay the instalment which fell due on 1st May, 1996. Instead of making payments, different proposals were made by the respondent for payment. The respondent first proposed that he would pay the rental due on 1st May, 1996 for the 6 months period ending 14th May 1996, a sum of Rs.20,00,000/- only as on account part payment on or before 31st July, 1996. The respondents by their letter dated 13th June, 1996 forwarded four cheques for Rs.5,00,000/- each, all undated, with a request to the petitioner to deposit the same on written confirmation from the respondents. One of the said cheques was encashed on 24th June, 1996. For the remaining three cheques, no confirmation was received from the respondents. Fresh proposals were made by the respondents on 7th December, 1996. The respondents, however, failed and neglected to abide by the said proposal. Again by tax message dated 19th December, 1996 the petitioner recorded the relevant facts and called upon the respondents to pay the two instalments of Rs.10,00,000/- and Rs.18,00,000/- which were over due. A sum of Rs.10,00,000/- was paid by the respondents to the petitioner on 3rd January, 1997. The petitioners by its various letters/fax messages called upon the respondents to make payment towards the arrears of lease rentals due and payable. The respondent failed and neglected to pay the same. On 28th August, 1997, the petitioners called upon the respondents to pay an aggregate sum of Rs.2,26,77,266.50 within a period of 7 days failing which the lease agreement will stand terminated. The respondents did not reply to the notice nor did they make any payment and hence, the lease agreement stood terminated. On termination of the lease agreement, it is pleaded that the petitioners are entitled to recover possession of the leased equipment and a sum of Rs.2,96,89,701.50. Apart from this, it is stated that the petitioners are entitled to a certain amount of liquidated damages also. The aforesaid lease agreement, contained an arbitration clause which reads as follows :