Winding up petition admitted for Rs. 12,00,000 with installment plan. Additional claim referred to separate suit.

The court admitted the winding up petition for Rs. 12,00,000 with interest, ordering the company to pay in four monthly installments starting from 15th November 2018. Failure to comply would lead to advertisement and additional proceedings. The remaining claim of Rs. 20,00,000 was referred to a separate suit, granting the petitioner the benefit of the limitation period.

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Issues Involved:
1. Allegation of financial accommodation by the petitioner.
2. Encashment of cheques by the company.
3. Absence of loan agreement or contemporaneous documents.
4. Dishonour of the repayment cheque.
5. Statutory notice and reply by the company.
6. Alleged repayment by the company and counterclaims.
7. Dispute over blank cheques and their encashment.
8. Admissibility of the company's defense.
9. Application of Section 269 T and 271 E of the Income Tax Act, 1961.
10. Consideration of cited judgments.
11. Admission of winding up petition and interest on unpaid amounts.
12. Relegation of balance claim to a suit.

Detailed Analysis:

1. Allegation of Financial Accommodation by the Petitioner:
The petitioner, Saraf Engineers Private Limited, alleged that Zonal Electroplast Private Limited (the company) was provided financial accommodation aggregating to Rs. 32,00,000 during the Financial Year 2011-2012, paid through four account payee cheques.

2. Encashment of Cheques by the Company:
The records confirmed that all four cheques were duly encashed, and the money was appropriated by the company.

3. Absence of Loan Agreement or Contemporaneous Documents:
The petitioner claimed the loan was repayable with interest at 18% per annum but failed to produce any loan agreement or contemporaneous documents to establish the terms and conditions of the financial accommodation.

4. Dishonour of the Repayment Cheque:
The company issued a cheque for Rs. 5,00,000 dated 3rd December 2012, which was dishonoured due to insufficient funds. The petitioner provided photocopies of the documents showing the reasons for dishonour.

5. Statutory Notice and Reply by the Company:
The petitioner issued a statutory notice on 11th January 2014, demanding Rs. 51,17,584, comprising the principal loan amount and interest. The company, in its reply dated 6th February 2014, acknowledged receiving Rs. 32,00,000 but claimed to have repaid Rs. 25,00,000 through blank cheques and an account payee cheque of Rs. 5,00,000.

6. Alleged Repayment by the Company and Counterclaims:
The company alleged that Balaji Enterprises and Balaji Engineering Company, both associated with the petitioner's principal shareholder, had placed orders for transformers. The company claimed it was agreed that repayment cheques would be presented upon receiving payments from these entities. The company stated it received Rs. 25,00,000 from these entities and claimed additional dues of Rs. 7,82,324 from them.

7. Dispute Over Blank Cheques and Their Encashment:
The company alleged that five blank cheques were filled as self-cheques and encashed by the petitioner's representatives. The petitioner denied receiving any repayment and disputed the alleged agreement and encashment of blank cheques.

8. Admissibility of the Company's Defense:
The court noted the absence of any contemporaneous documents supporting the company's alleged agreement. The petitioner's failure to specifically deny the company's allegations regarding the blank cheques and representatives left this issue unresolved, requiring a trial to ascertain the facts.

9. Application of Section 269 T and 271 E of the Income Tax Act, 1961:
The court deferred the consideration of the application of these sections to the suit where the balance claim of Rs. 20,00,000 and any counterclaim by the company would be addressed.

10. Consideration of Cited Judgments:
The court acknowledged the judgments cited by both parties but emphasized that their application depends on the specific facts of the case. The court concluded that the company had no bona fide defense against the petitioner's claim for Rs. 12,00,000.

11. Admission of Winding Up Petition and Interest on Unpaid Amounts:
The winding up petition was admitted for Rs. 12,00,000. The petitioner was entitled to 18% interest on Rs. 5,00,000 from the date of dishonour and 10% interest on Rs. 7,00,000 from the date of the winding up notice until realization.

12. Relegation of Balance Claim to a Suit:
The petitioner's claim for the remaining Rs. 20,00,000 was relegated to a suit. The petitioner was granted the benefit of the limitation period from the date of the winding up petition to the date of judgment. The company was also granted similar benefits if it filed a suit or counterclaim for Rs. 5,00,000.

Conclusion:
The winding up petition was admitted for Rs. 12,00,000 with interest. The company was ordered to pay this amount in four monthly installments starting from 15th November 2018. Failure to pay would result in the petition being advertised and further proceedings. The balance claim of Rs. 20,00,000 was relegated to a separate suit.

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