9911796707
TMI Blog2012 (8) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... facilities to the companies. 2. As is often the case in this country, matters are complicated not so much by the facts or law involved therein but by the convoluted approach to the law and facts. So has it been in this case. There are clear, written agreements between the parties that spell out their rights and obligations and the nature of the transaction between them. The statutory notices, which make out a cause of action divorced from the agreements, have prompted the companies to adopt a legal defence. But such defence should not hold good it if is recognised that a statutory notice need only indicate the claim and its basis therefor and the legal nuances therein may be disregarded. 3. The nature of the transaction appears from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion about realisation of the instruments is available or may stop accepting the instruments at any or all the locations to protect the bank's interest." 4. It is, thus, evident that notwithstanding the legal obligation of the parties, the companies remained bound by the terms of the agreement executed with the petitioner to reimburse the principal amount covered by the cheques in the event they were dishonoured. 5. On December 16, 2011, the two companies deposited several cheques of an aggregate value of Rs. 18.80 crores. December 16 was a Friday. The accounts of the two companies got immediately credited by the values of the cheques deposited therein in terms of the arrangement between the parties. Upon the cheques being presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount till its liquidation." 8. A further letter followed on January 9, 2012, the penultimate paragraph whereof reads as follows : "While we appreciate and very much acknowledge we have a liability to you arose out of the cheque returned but hope you will appreciate in turn the present difficult situation we are passing and which further worsened due to sudden discontinuance of the facility." In a business practice any business entity always considers the credit assistance and makes a cash management system accordingly." 9. If the errors in expression are disregarded, the two letters amount to categorical admission of the companies' indebtedness to the petitioner. Indeed, the first letter carries the figure of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, 2011, were given a go-by by the parties. In the petitioner having set out the relevant clauses of the agreements in the body of the petition, it is evident that the agreements survive according to the petitioner. In course of dealing with the relevant averments, the companies have not claimed that the agreements had been terminated or otherwise given a go-by. 13. Notwithstanding the case made out in the statutory notices issued on behalf of the petitioner, it is evident from clause 9 of the agreements between the parties that the company in either case remained obliged to make good the sum covered by cheques deposited by the companies with the petitioner which were dishonoured upon presentation. The letters of admission issued on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o these companies. In any event, since substantial sums appear to be due and the value of the securities cannot be demonstrated to match or even come close to the value of the claim, such aspect of the matter need not be addressed conclusively at the admission stage-when a petitioning-creditor would ordinarily be entitled ex debito justitiae to have the petition admitted if a sum in excess of Rs. 500 is due to it which is unmatched by any security. 16. C. P. No. 164 of 2012 is, accordingly, admitted for the principal sum of Rs. 8 crores together with interest thereon at 10 per cent, per annum from December 19, 2012, which is the date of dishonour of the relevant cheques. If Vikash Metal and Power Ltd., pays off the entire amount to the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
