UCO BANK Vs. ACHAL ALLOYS PVT LTD

JUDGEMENT

(1.) THE petitioner, the UCO Bank, has filed this petition for winding up of the respondent -company, M/s. Achal Alloys Pvt. Ltd., Ujjain, under Sections 433 and 434 of the Companies Act, 1956. The petitioner, the United Commercial Bank, is a nationalised bank having its branch at Maxi Road, Ujjain. The company is also located in Maxi Road, Ujjain. The company was incorporated on July 1, 1983, under the Companies Act, 1956. The registered office of the company is also at 7, Industrial Estate, Maxi Road, Ujjain.

(2.) IT is not disputed that the petitioner rendered the company financial assistance and also the facility of grant of overdraft and by purchase of cheques to be encashed from the company's account in the Union Bank of India, branch at Siyaganj, Indore.

(3.) THEREUPON , on March 25, 1991, a notice under Section 434 of the Companies Act was sent by the petitioner to the company, calling upon the company to pay the petitioner the sum of Rs. 10,50,000 plus interest for appropriating in the bill purchase account as well as Rs. 13,17,550 plus future interest in the company's current account totalling Rs. 23,67,550 plus future interest thereon. The company, however, failed and neglected to pay the debts of the petitioner. As such, in view of the fact that the company has failed to pay the acknowledged debt despite the statutory notice, it entitles the petitioner to seek liquidation of the company.