1993 (7) TMI 248

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...., Ujjain. The company was incorporated on July 1, 1983, under the Companies Act, 1956. The registered office of the company is also at 7, Industrial Estate, Maxi Road, Ujjain. It is not disputed that the petitioner rendered the company financial assistance and also the facility of grant of overdraft and by purchase of cheques to be encashed from the company's account in the Union Bank of India, branch at Siyaganj, Indore. According to the petitioner, some of the bills (cheques) of the respondent in the bills purchase account were dishonoured on presentation, vide annexure A. The bills purchase account of the company shows a debit of Rs. 10,50,000 plus interest at the rate of 20 per cent. per annum from January 25, 1990. Likewise the c....

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....he company. The petition has been opposed by the company on the ground that it is not tenable under the law because there is a bona fide dispute as to the liability to pay the dues as mentioned in the petition under reply. Since there is a dispute, it cannot be said that there is any negligence to pay the same under the relevant provisions of the Companies Act. The petition is based absolutely on false and baseless allegations. Material information has been withheld by the bank. The bank had actually assured the company to grant credit facility to the tune of Rs. 75 lakhs and a proposal was accordingly made to the sanctioning authority. Acting on this aforesaid assurance the company switched over from its regular banker, the State Bank o....