ICICI BANK LTD Vs. SAURAV CHEMICALS LTD

JUDGEMENT

(1.) THIS petition under Sections 433(e), (f), 434 and 439 of the Companies Act, 1956, filed by the ICICI Bank Ltd., seeks winding up of the respondent -company -M/s. Saurav Chemicals Ltd.

(2.) WHILE the petitioner is a public financial institution, the respondent -company was incorporated on December 20, 1993, under the provisions of the Companies Act, 1956 (in short "the Act") with its registered office within the territorial jurisdiction of this Court. The authorised equity share capital of the respondent -company is Rs. 2 lakhs divided into 20,000 equity shares of Rs. 10 each. The company has been incorporated to carry on the business as distributor/retailer/exporter and importer of all kinds of industrial organic as well as inorganic -chemicals, other consumable chemicals as well as the manufacture of industrial chemicals like detergent powders, cleaning powder, acid slurry, liquid soap, and allied industrial chemicals.

(3.) THE petitioner -bank has further alleged that the swap deal transaction expired on August 7, 2006, which was duly conveyed to the respondent -company on August 10, 2006. However, notwithstanding its acknowledgment and clear admission in the form of letters of confirmation/ISDA agreement, the respondent -company has failed to make the outstanding payment to the petitioner -bank. A notice for winding up was served vide registered letter dated October 7, 2006, but the respondent -company vide its reply dated November 4, 2006, has denied its liability allegedly on wholly flimsy and untenable grounds. According to the petitioner -bank, the respondent -company is liable to pay its lawful debts amounting to Rs. 34,24,437 as on August 7, 2006, along with interest at the floating rate/ICICI Bank Benchmark advance rate plus 8 per cent, till the date of payment and its non -failure amounts to its inability to pay the lawful debts warranting action of the winding up.