J G FINANCE LIMITED Vs. HANSAFLON PLASTOCHEM LTD

JUDGEMENT

(1.) M/s. J. G. Finance Limited has filed this petition under sections 433 and 434 of the Companies Act, 1956, read with rule 9 of the Companies (Court) Rules, 1959, praying that M/s. Hansaflon Plastochem Limited be ordered to be wound up as this company is unable to pay its admitted debts.

(2.) Before deciding the merits of the respective contentions raised by the learned counsel for the parties, it would be appropriate to refer to the necessary facts giving rise to the present petition.

(3.) The petitioner company, which is incorporated under the provisions of the Companies Act, 1956, with its registered office at 307, Ajit Sen Bhawan, 13, Crooked Lane, Calcutta, is primarily involved in the business of financing. Of course, under the objects of the company, the company also deals in the products other than merely financing. On 8 March, 1995, the petitioner company made incorporated deposit of Rs. 50,000 with the respondent company for one month bearing interest at the rate of 24% per annum. The amount was deposited by means of Cheque No. 932775, dated 8. 3. 1995 drawn on Punjab National Bank, Karol Bagh, New Delhi. As the respondent company failed to fulfil its obligation of the re-payment of the incorporate deposit on the expiry of one month, a demand was raised by the petitioner-Company. The respondent company made some payments to the petitioner company of the amount, on the dates indicated hereunder : Date Amount 10. 4. 1995 15,00,000 15. 1. 1996 18,00,000 20. 3. 1996 12,47,000