KAMLAPUR SUGAR AND INDUSTRIES LTD Vs. DENA BANK

JUDGEMENT

(1.) THIS is a winding up application coming up for final judgment. Only the petitioning creditor and the company have appeared. No other person either supporting or opposing the winding up has appeared.

(2.) THE company had borrowed substantial sums of money from the petitioning creditor from 1997. A legal notice was served by the petitioning creditor upon the company on 18th September, 2003 asking them to pay up the outstanding. Proceedings were taken by them before the Debt Recovery Tribunal, Lucknow. THE said Tribunal issued a certificate on 14th February, 2008 to the effect that the petitioning creditor was entitled to recover a sum of a little more than Rs. 17,00,00,000/- from the company. THE company preferred an appeal against such order before the Debt Recovery Appellate Tribunal at Allahabad, which, on 15th December, 2008 affirmed the said final order of the said Tribunal while dismissing the appeal for default.

(3.) THIRDLY, reliance was placed on section 34 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 to argue that this Act had over-riding effect. When recourse was taken to this Act, recourse could not have been taken to filing of a winding up application under the Companies Act, 1956.