J G FINANCE LTD Vs. JAMNA AUTO INDUSTRIES

JUDGEMENT

(1.) J. G. Finance Ltd. have filed this petition under sections 433 and 434, read with section 439 of the Companies Act, 1956 (hereinafter 'the Act') praying for an order of winding up against Jamna Auto Industries Ltd. (hereinafter 'the respondent-company' ).

(2.) In order to examine the sustainability of the claim of the petitioner, reference to some basic facts would be necessary. The petitioner, which itself is a limited company duly incorporated under the provisions of the Act, has filed this petition through its managing director and constituted attorney in furtherance to the resolution of the Board of directors of the petitioner-company dated 28th February, 1997. A lease agreement dated 14th May, 1992 was entered into between the petitioner as lessor and the respondent-company as lessee. Under the terms of the said lease, list of equipment was granted in favour of the lessee in relation to the equipment, machinery, etc. , described in the schedule of agreement. The period of lease being 48 months at the rate of Rs. 1,94,067 per quarter continuously for 12 quarters payable in advance at Delhi commencing from 14th May, 1993. The lease charges were in addition to the other charges and expenses payable in terms of the agreement between the parties. Initially the respondent-company was paying the amounts, but it is averred that it fell in default in relation to five quarters from November 1995 for the period May 1996 to February 1997 amounting to Rs. 9,70,335. It is averred in para 11 of the petition that the cheques issued by the respondent-company in relation to lease rent were dishonoured. For default thereto and on account of late charges, the petitioner-company claimed a sum of Rs. 12,09,814. 00 as on 31st March, 1997. The petitioner served a statutory notice dated 14th May, 1997 through its counsel claiming the said amount. Copy of the notice is annexed hereto along with acknowledgement receipts ex. P. 3 and ex. P. 4 to this petition. Having failed to recover the amount, the petitioner filed the present winding up petition.

(3.) Upon notice, the respondent filed detailed reply, took preliminary objections in regard to maintainability of the petition and also repudiated the claim of the petitioner and any part thereof. The respondent-company stated that none of its cheques had been dishonoured and in fact all cheques have been honoured except for one cheque the payment of which was stopped because of default on the part of the petitioner-company. As such, the claim was without any merit.