1964 (8) TMI 23

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....7,462, Rs. 30,000 and Rs. 5,000 respectively, together with interest. Statutory notices of demand were served on the company on November 26, 1963; but the company made no payment and the petitioners accordingly assert that by virtue of the presumption arising under section 434(1) of the Act, the company must be deemed to be unable to pay its debts. It is further alleged by the petitioners that Mittar Sain Jain has seized control of the company and is running it in a manner prejudicial to the interests of the petitioners. The petition is opposed by the company and its directors, who have filed a counter-affidavit, pleading that there are bona fide disputes with regard to the claims of each of the three petitioners. The stand taken in this....

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....itioner No. 1 denies his liability to pay rent and claims that the house in question was allotted to his family in exchange for another house belonging to them, which was taken over by the company. But the company has produced evidence to show that when petitioner No. 1 was working as one of the directors of the company he used to pay 10 per cent, of his salary as house rent for the premises in question (vide annexure "C" to the counter-affidavit). Petitioner No. 1 tries to make out in his rejoinder that this 10 per cent, deduction was not for house rent but merely by way of a "voluntary cut" in his salary; but the documentary evidence is against him in this respect. I am satisfied that the company has a bona fide counter-claim against p....

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....ie evidence to support a counter-claim by the company that would wipe out the entire debt due to petitioner No. 2. To prove its bona fides in this connection, the company has offered to deposit security in the form of National Savings Certificates for the payment of any amount that may eventually be found due to petitioner No. 2 after the disputes between him and the company have been finally decided. The amount standing to the credit of petitioner No. 3 in her loan account in the books of the company (Rs. 5,000 plus accumulated interest) has been debited with a sum of Rs. 4,432.86, comprising the amount due as calls in arrears and the interest thereon; and she has been informed that she can take the balance of Rs. 1,839,59 anytime she l....