2012 (9) TMI 1128 - HC - Companies Law

Summary

Issues involved: Claim for dishonored cheques, winding-up petition, cancellation of conveyance, maintainability of winding-up petition alongside civil suit.

Summary:

Claim for Dishonored Cheques:
The appeal pertains to a claim for the value of two dishonored cheques amounting to Rs. 43.4 Lacs issued by the respondent in favor of the appellant as part consideration for a flat at Picnic Garden. The respondent claimed they had sold and conveyed the flat for a total of Rs. 48.4 Lacs, with three account payee cheques. Two cheques of Rs. 25 Lacs and Rs. 18.4 Lacs were dishonored, leading to a winding-up petition and subsequent legal actions.

Winding-Up Petition and Cancellation of Conveyance:
The respondent filed a winding-up petition and a suit on the same cause of action, claiming cancellation of the conveyance. The appellant contended that the cheques were not for presentation but as part of a guarantor arrangement for another company. The court rejected the appellant's defense as not bona fide, leading to the admission of the winding-up petition.

Maintainability of Winding-Up Petition Alongside Civil Suit:
The appellant argued that the winding-up petition was premature as the suit for cancellation of the conveyance was pending. The respondent contended that both proceedings could proceed simultaneously as the reliefs sought were distinct. Legal precedents were cited by both parties to support their arguments.

Court's Decision:
After considering the facts and legal arguments, the court upheld the decision to admit the winding-up petition, stating that a mere pending civil suit on the same cause of action does not render a winding-up petition not maintainable. The court found that the dishonored cheques were an admitted fact, leading to the dismissal of the appeal and rejection of the stay application.

In conclusion, the court dismissed the appeal, stating that the winding-up petition was rightly admitted and did not warrant interference. No costs were awarded, and the stay application was rejected.