TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>High Court dismisses appeals in newsprint supply dispute, orders payment with interest</h1> <h3>Chowringhee Prakashan (P.) Ltd. Versus Begwani Trade & Industries (P.) Ltd.</h3> Chowringhee Prakashan (P.) Ltd. Versus Begwani Trade & Industries (P.) Ltd. - TMI Issues:Claim by respondents against the company for financial accommodation and supply of newsprint, Company's failure to clear dues leading to winding up petitions, Disputed amount and fraudulent activity alleged by the company, Company's plea for settlement and rejection by the court, Company's inability to pay the offered settlement amount, Rival contentions and arguments regarding the outstanding amount, Court's analysis of the situation, Company's defense and court's rejection, Charging of interest on interest by the respondent, Dismissal of appeals and possibility for the company to propose a repayment scheme.Analysis:The judgment by the High Court of Calcutta dealt with three appeals related to a claim made by respondents against a company engaged in publishing news daily. The company faced financial stringency, leading to outstanding dues to the respondents for newsprint supply. The company acknowledged the dues but later disputed the amount, alleging overcharging and fraudulent activity by the respondents. The court rejected the company's plea and directed payment of the admitted sums with interest. Despite the company's offer for settlement, the court found it insufficient and dismissed the appeals, emphasizing the company's lack of candid approach and financial difficulty as no excuse for dishonesty.The court assessed the situation, considering the company's financial strain and the respondents' claim for outstanding dues. It highlighted the company's lack of a plausible defense and rejected its contention of overcharging by the respondents. The court emphasized that the company should have been frank and candid in its dealings, especially in financial distress, and criticized its attempt to resist winding up proceedings through a mala fide approach. The court found the company's defense not bona fide and its offer for settlement lacking sincerity, leading to the dismissal of the appeals.Regarding the charging of interest on interest by the respondents, the court noted it as a questionable practice but did not intervene due to the company's failure to offer payment of the principal amount with simple interest in installments. The court dismissed the appeals but left room for the company to propose a repayment scheme with simple interest instead of compound interest in the future, subject to the court's consideration. The judgment concluded with no order as to costs, indicating the court's stance on the matter.In summary, the court's detailed analysis focused on the company's lack of candor, its disputed claims against the respondents, and the insufficiency of the offered settlement amount. The judgment emphasized the importance of honesty and transparency in financial dealings, ultimately leading to the dismissal of the appeals while allowing the company a chance to propose a suitable repayment scheme in the future.
TaxTMI 
TaxTMI 
