1998 (8) TMI 484

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.... 1. Heard the learned counsel for both sides on admission. 2. It is an admitted fact that the respondent-company had taken on lease the arc welding machines and arc welding generators on a rent ofRs. 89,60,000 for a period of five years through agreement dated25-9-1994. The lease rent was payable in 20 quarterly instalments ofRs. 4,48,003 and the respondent-company has also issued post-da....

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....er-company, viz., Lloyds Metals Co. has entered into a contract with the respondent-company and it has given a bank guarantee of Rs. 1 crore. But due to the default of Lloyds Metals Co., it cancelled the order and, therefore, the respondent-company was unable to claim damages due to the default of Lloyds Metal Co. The petitioner-company had orally agreed to adjust the outstanding quarterly rentals....

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....ition, no reference has been made regarding adjustment of Rs. 3 lakhs in the amount of Rs. 15,92,012 as was due on 25-4-1997, up to 25-10-1997, and it is also true that a reference to the reply of the respondent-company dated 4-7-1997, has not been made in the company petition. But on a perusal of the correspondence between the respondent and the petitioner it appears that, vide letter dated24-9-1....

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....7, written by the petitioner-company it appears that it had given credit of Rs. 3 lakhs as requested by the respondent-company against the dues amounting to Rs. 15,92,012. It is clearly mentioned in this letter that future lease rental was demanded and a request was also made for the plans of the respondent-company for meeting the commitments. There is no reply to this letter on record. Therefore,....