1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. COMPANY PETITION NO.495 OF 2000 Indsind Bank Ltd. ...Petitioner. Vs. Viral Filaments Ltd. ...Respondent. .... Mr. Cherag Balsara with Mr.Rajesh Talekar i/b. M/s.K.Ashar & Co. for the Petitioner. None for the Respondent. ..... CORAM : DR.D.Y.CHANDRACHUD, J. November 4, 2009. P.C. The claim, which forms the basis of the Company Petition for winding up under Section 434 of the Companies’ Act, 1956, arises out of a Lease Agreement, dated 30th September 1995 under which certain equipment of a total value of Rs.3,77,25,000/- was leased by the Petitioner to the Company. The lease rentals were repayable over a period of five years in installments of Rs.28,57,669/- per quarter. According to the Petitioner, the Company made a part payment of Rs. 21.97 lakhs on 30th June 1997. By its letters dated 18th October 1995 and 4th April 1996, the Company confirmed the lease and the use of 2 the equipment. On 7th October 1996, the Company’s Chartered Accountant submitted a certificate of verification and valuation. On 26th May 1997, the Company by its letter confirmed that the leased equipment was in its possession. Since the lease rentals had fallen in arrears, the Petitioner addressed Advocate’s notices on 10th July 1998, 16th October 1998, 13th April 1999 and 6th January 2000. The notices were replied on 15th July 1998, 28th July 1999, 29th August 1998 and 30th January 2000. A statutory notice under Sections 433 and 434 of the Companies’ Act, 1956 was addressed on 8th March 2000 to which there is a reply dated 14th March 2000. The claim in the Company Petition arises on the default of the Company in paying an amount of Rs.5,17,46,623/- together with interest. There was no reply to the Company Petition. The Company Petition was admitted on 23rd November 2000. The Petitioner instituted proceedings before the Debt Recovery Tribunal which, the Court is informed, culminated in an order dated 20th October 2000 passed in O.A. 495 of 2000. 3 During the pendency of the proceedings, the Company was before the BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985. An affidavit has been filed on behalf of the Petitioner by its Assistant Vice President on 21st August 2008 placing on record, an order dated 13th November 2006 of the BIFR disposing of the reference and an order passed by the AAIFR on 9th August 2007 dismissing the appeal filed by the Company. From the material before the Court, it emerges that the Company is unable to pay its debts. The claim of the Petitioner remained unsatisfied. There is no reply. The averments contained in the Petition for winding up have not been controverted. In these circumstances, the Company Petition is made absolute in terms of prayer clause (a) and on prayer clause (b), the Official Liquidator is appointed as Liquidator with all requisite powers under the Companies Act, 1956. ......