9911796707
TMI Blog2007 (1) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... uly 7, 2005. The court was prima facie satisfied that the company was unable to pay its debts and that the claim of the petitioner was indisputable. The petition was admitted for euro 786, 306 with interest at the rate of 6.5 per cent, per annum from September 8, 2003. The company was afforded an opportunity to pay off the entire amount, inclusive of interest in 48 equal monthly instalments beginning from August 1, 2005. 3. No money was tendered and advertisements were published. 4. In the company's affidavit at this second stage, it admitted having purchased a Magnetom Harmony Magnetic Resonance Imaging (MRI) System at an original price of DM 2,100,000. Such equipment, according to the company, was a sophisticated piece of machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er documents, of May and June 2000, have been relied upon by the company to suggest that service of the equipment had been suspended and as such the company was unable to operate the MRI and pay therefor. In the first of the documents, a letter dated May 19, 2000, the company had pleaded as follows: We sincerely apologise for the delay in the remittance in consonance with the revised schedule. This was primarily caused due to extreme financial crunch faced by ourselves resulting from heavy capital expenditures on new equipments and pressure of re-payments from banks and unsecured sources. In addition, a lethargic market scenario has further aggravated our revenues resulting in a poor cash flow making it incumbent for us to delay our dues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled the petitioner to charge additional interest upon the company defaulting in making payment in accordance with the agreed schedule. At the company's request the payment dates were rescheduled. Despite the company's request for deferred payments having been acceded to the company missed the first two suggested dates of payment. A sum of DM 255,625 that the company had undertaken to pay by mid-December 1999, remained unpaid till beginning of May 2000, following which the petitioner instructed its Indian branch to suspend the servicing of the equipment. 11. The documents relied upon by the company are to be looked into, to ascertain whether they are material enough to resist the order sought to send the company into liquidat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possible to enumerate the grounds that can persuade the court to refuse to send the company into liquidation despite having found it to be unable to pay the petitioner's or other dues. 14. In the procedure that has been followed by this court, the two considerations at both stages are whether the debt is undisputable and the company should be wound up. The first has to be satisfied before the second test can be undertaken. At the admission stage, a less tentative and more firm view, albeit prima facie, is taken as to the indisputability of the debt. A far more tentative and less firm view is taken as to whether the company should be wound up. It is essentially an exercise to ascertain whether the petition is maintainable as the undis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... secured creditor gives up his right to the security and stands in queue to receive his proportionate share out of the assets of the company, upon the company passing into the liquidation stage. 17. The petitioner has also averred at paragraph 64 of the petition that the value of the securities were not enough to meet the claim. Implicit in such statement is the petitioner's abandonment of its security. Since no further grounds have been urged and the indisputable nature of the debt has not been questioned, it is not necessary to revisit the premise on which the petitioner founded its right to have the company wound up. At the receiving stage, this court had come to a conclusion, despite it being prima facie, that there was no disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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