TaxTMI 
TaxTMI 
2007 (10) TMI 398
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....GMENT Anoop V. Mohta, J.- The petitioner, a Government of India Enterprise, has invoked the provisions of sections 433 and 434 of the Companies Act, 1956 (for short, "the Act"), as in spite of the service of statutory notice, the respondent-company failed to make the payment of Rs. 3,68,29,634.91 (rupees three crores sixty eight lakhs twenty nine thousand six hundred thirty four and ninety one p....
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....ine only). Both are dishonoured. The proceedings under section 138 of the Negotiable Instruments Act, 1881, are pending. On October 21, 1999, the petitioner again called upon the respondent-company to make the payment. On March 31,1999, a demand promissory note has been executed by the respondent in favour of the petitioner for a sum of Rs. 2,83,70,700.91 (rupees two crores eighty three lakhs sev....
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....dly signed demand promissory note at the time of each supply of raw material, and as no payment has been made by the respondents, even under the letter of credit, the liability to make the payment remained unpaid. The primary responsibility of the respondent-company to make the payment in the facts and circumstances of the case, the respondent-company was not in a position to pay or deposit this a....
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....inding up of the respondent-company. The authorities as cited by learned counsel appearing for the respondents are totally distinct and distinguishable on the facts itself. The allegations of fraud against the petitioner though raised, just cannot be reiterated first time in the present proceedings. The defence so raised, in any way does not appear to be a bona fide and reasonable one and basical....