9911796707
TMI Blog1999 (3) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... entered into between Ch. Savithri, S. Padma and Muralidhar on the one part (the first party) and Sampat and V. Vijayalakshmi on the other part (the second party) as regards payment of Rs. 3,53,330. In pursuance of the same, the first party paid Rs. 1,50,000 to the second party and agreed to pay the balance amount of Rs. 2,03,330. Manner and mode of payment was also agreed upon between them and the first party had undertaken the pressing work and the amount due to the first party towards charges for pressing work done in the past was also to be taken into account in arriving at the value of Rs. 2,03,330. There are various other terms of contract. Clause 15 of the contract provides that in order to legalise the contract Board meeting shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admitted liability. It has been umpteen number of times observed that proceeding under section 433 is not a substitute for a civil suit by a creditor against the company. No doubt, mere filing of a civil suit need not be an impediment to proceed with the company petition for winding up. Yet, it is a circumstance to be taken into consideration while arriving at the conclusion that the debt is admitted or there is a bona fide dispute with respect to the same and it has to be determined in an appropriate civil forum. 4. It is not disputed that the claim made in the civil suit for recovery includes the alleged amount with respect to which it is stated that it is admitted and the company is unable to pay the same. Hence, it is a part and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d judgment that the civil suit as well as legal proceedings can continue simultaneously. Without expressing our opin- ion on the law laid down in the said judgment, though it cannot be categorically laid down that mere showing a debt due in a balance sheet would amount to acknowledgement, we may observe that it is a well-established law that for giving an acknowledgement, a person has to be conscious of his act to the knowledge of the other person. Merely showing a debt in a balance sheet cannot, prima facie , as presently advised, be termed to be an acknowledgement in terms of the Indian Limitation Act. The acknowledgement as envisaged by the Limitation Act categorically had to be with the intention of accepting the debt with the object o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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