2013 (11) TMI 1348

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....nei and Rs. 20 lakhs to G. S. Fertilisers Private Limited and a further sum of Rs. 50 lakhs to the petitioning creditor. When the matter again appeared on 12th June 2013 the petitioning creditor submitted that they have no subsisting claim against the company because of the subsequent agreement. However, the company prays for two installments to pay off the entire principal amount due to Shilpa Sanei and handed over two demand drafts covering the entire claim of G. S. Fertilisers Private Limited to the Advocate of the said creditor. The company also handed over a demand draft of Rs. 82,50,000/- being the half of the principal amount due to Shilpa Sanei and handed over the sum to the Advocate-on-Record of the said creditor. The Court records....

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....r of the interest in the proceeding. The company in turn says that those affidavits were taken out to show bona fide that the company agrees to pay the principal amount and the said statement cannot be co-related with an admission of liability to pay the interest in absence of any express agreement in this regard. The learned Advocate appearing for the company relies upon a judgment of the Karkanata High Court in the case of Jyoti Ltd. v. Boving Fouress Ltd. [2001] 33 SCL 736 to contend that unless there has been an express agreement to pay the interest, submission of the credit bill or the invoice unilaterally, does not create a bilateral agreement. The Court must bear in mind that the winding up proceeding is not a recovery proceedi....