2003 (1) TMI 540 - HC - Companies Law

Summary

Issues:
- Application under section 433(e), (f), section 434, section 439(1)(c), and section 450 of the Companies Act, 1956 for winding up.
- Claim of friendly loan advanced by petitioner to O.P. No. 1, M/s. ICSL.
- Opposition by O.P. No. 2 BSIDC regarding the loan claim.
- Lack of evidence supporting the friendly loan claim.
- Dispute over the authenticity of the ledger book and entries.

Analysis:
1. The petitioner, a company limited by shares, sought winding up of O.P. No. 1, M/s. ICSL under various sections of the Companies Act, 1956, due to non-payment of a friendly loan amounting to Rs. 10,48,285.62. The petitioner alleged repeated requests and notices for payment were ignored by O.P. No. 1, leading to the claim of commercial insolvency.

2. O.P. No. 2, BSIDC, opposed the claim of the friendly loan, stating it was false and not acknowledged by O.P. No. 1, M/s. ICSL. The intervention by BSIDC raised questions about the authenticity of the loan transaction and the credibility of the petitioner's claim.

3. The court scrutinized the evidence presented by both parties. Despite the petitioner's assertions of providing a friendly loan, no concrete evidence such as cheques or bank drafts confirming the transaction was produced. The lack of supporting evidence weakened the petitioner's case for winding up O.P. No. 1.

4. Doubts were raised regarding the authenticity of the ledger book presented by O.P. No. 1, M/s. ICSL. Entries showing repayment of the alleged loan amount and other discrepancies cast further suspicion on the validity of the petitioner's claim. The court emphasized the importance of concrete evidence to substantiate claims in such cases.

5. Ultimately, the court found the absence of compelling evidence to prove the existence of the friendly loan, leading to the dismissal of the petition for winding up. The lack of documentation and conflicting accounts regarding the alleged loan transaction rendered the petitioner's claim unsustainable, resulting in the rejection of the winding-up prayer.

6. In conclusion, the court dismissed the company petition due to the failure to establish the provision of the friendly loan to O.P. No. 1, M/s. ICSL. The judgment highlighted the significance of concrete evidence and the burden of proof in matters of financial transactions and insolvency claims.