STATESMAN LTD Vs. NEVATIA UDYOG LTD

JUDGEMENT

(1.) All four appeals would relate to winding up petitions filed by four different petitioning creditors being controlled by the same business group. On appreciation of facts involved in all the four appeals, we would find the Company Statesman Limited having dearth of financial resource way back in 2004, approach the other business group involved in the above appeals to extend assistance to the company by causing newsprint supplied through various suppliers.

(2.) The arrangement was, the business group would clear of the bill immediately upon being raised on the company by the suppliers. The company would, in turn, execute a hundi payable after sixty days through bank together with interest at the rate of nineteen per cent and service charges at the rate of one per cent. In effect, the company would get sixty days credit for the supply that would cost them an additional burden of twenty per cent. The supply was made to the extent of crores, payments were also made from time to time. The company claimed that those payments were made by the business group in six different trade names being Babcock Udyog, CNN Enterprise, Nivetia Udyog Limited. The other two were Mukherjee and Zenith Traders. The Nivetia group however, disowned the relationship with Zenith. In one of the pleadings they admitted having control over the business of Mukherjee. However, four petitions would relate to the first four parties named above. Zenith and Mukherjee were not involved. As per the brief extract so handed over in Court a sum of rupees seven crore thirty lacs approximately became due and payable as on April 30, 2007 out of which rupees three crores seventy-four lacs was paid on May 14, 2007 leaving a balance sum of rupees three crores fifty-six lacs approximately. The company in their defence admitted the agreement, however, denied the liability on the ground that the amount of rupees three crores seventy-four lacs paid on May 14, 2007 was in full and final settlement of the claim of Nivedia Group that was agreed upon in a meeting held between the representatives of both the parties. The company relied on a letter dated April 25, 2007 whereby payments were forwarded by the company in full and final settlement of the claim of the Nivedia Group.

(3.) In the first winding up petition filed by Nivetia Udyog Limited, the petitioning creditor claimed that a sum of rupees seven lacs ninety two thousand seven hundred forty three and paise thirty three became due and payable as on April 30, 2007 after adjustment of payment of rupees five lakhs on May 14, 2007. The balance amount together with interest became due and payable to the extent of rupees four lacs sixty five thousand eight hundred fifty-six and paise ninety two that the company failed and neglected to pay despite notice. The company filed affidavit denying the claim on the ground that the payment of rupees five lakhs was sent to the petitioning creditor through forwarding letter dated April 25, 2007 wherein it was categorically made clear that the payment was in full and final settlement of their dues. The company claimed that Mr. Raja Mundra the representative of the petitioning creditor received the cheque and along with the letter by signing acknowledgement on a copy of the letter as appearing at page 126 of the paper book in APO 247 of 2011.