2006 (5) TMI 184

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....and Ms. Saroj Tulsian for the Appellant. U.S. Menon for the Respondent. JUDGMENT Bhaskar Bhattacharya, J. - This appeal is at the instance of the company in a proceeding for winding up and is directed against the order dated 27-3-2003, passed by a learned Single Judge thereby admitting a winding up petition to the tune of Rs. 3,20,000, with further direction upon the company to give a bank g....

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....nt of Rs. 3,20,000 by six equal monthly instalments. However, the learned Judge further directed the company to give a bank-guarantee to the extent of Rs. 2,50,000 for protecting the claim of the creditor for the balance amount for which the respondent was asked to seek remedy before the civil court with a further direction that if the creditor did not file the suit within four weeks from that dat....

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....ly passed an order of attachment before judgment in the suit that would be filed by the creditor. 7. The learned advocate appearing on behalf of the respondent, however, supported the order passed by the learned trial Judge and contended that there was no bar in passing such order even though his client has been asked to approach the civil court for the remedy. 8. After hearing learned couns....

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....ve a bank guarantee for the purpose of securing the disputed claim of the creditor. 10. We thus find that the portion of the order impugned by which the carried trial Judge directed the company to give a bank guarantee to the extent of Rs. 2,50,000 for the purpose of securing the disputed claim of the creditor cannot be supported and is liable to be set aside because such order was passed witho....