2001 (11) TMI 936

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ods. But the amounts so deposited were not repaid on respective maturity dates. The appellants issued notice and claimed interest at 14 per cent p.a. on the maturity value. It is alleged that as no reply was received, the company is deemed to have been unable to pay its debt and therefore the appellants filed this petition under section 433 of the Companies Act, 1956 ( the Act ) for winding up. Pending company petition, the entire amount along with interest was paid. The learned Single Judge on consideration of the case law has not interfered and observed that the petitioners will be free to sort out their grievance before the Civil Court by filing civil suits in accordance with law. 3. The grievance of the petitioners is that the learn .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it was held that unless interest portion is determined by a competent court, the winding up cannot be ordered on the basis of mere pleadings. As such winding up cannot be ordered and interest cannot be determined. 5. In the rejoinder the learned counsel for the appellants submits that the decision relied upon by the learned counsel for the company is of no avail as it pertains to the claim for damages and not to the claim for interest. 6. We have heard the learned counsel for the appellants and the learned counsel for the respondents and perused the material on record and also the case laws. 7. Under the Companies Act a special jurisdiction has been created for winding up which is entirely for a different purpose. That if admitt .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t and direct to pay interest at 12 per cent p.a., failing which the company would be liable to be wound up. This is not helpful in the facts of the present case. In Stephen Chemical Ltd. s case ( supra ), wherein the observation of the learned Single Judge that when a winding up petition has been filed on the ground that it is unable to repay its debt and the company admits its liability and in fact pays it up, the Company Judge is the appropriate forum for determining as to whether the creditor is entitled to interest on the amount in question or not, has not been interfered by the Division Bench on the ground that P H High Court Rules do not provide for a company appeal and the point in issue regarding delayed payment was not there. A .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X