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2014 (4) TMI 1199 - HC - Companies LawCompany when deemed unable to pay its debts - Entitlement to interest on the sums paid by the Respondent which have been utilized by the Appellant ever since the year 2007 - period of limitation - Held that:- We do not find any merit in the first contention that the Company Petition is barred by limitation for the reason that it is an admitted fact that the Appellant company itself issued a letter dated 09.01.2012 demanding the balance payment from the Respondent. In the said letter, the Appellant company stated that the Respondent can take possession of the flat and get their title deeds registered very soon. The money taken by the Appellant company from the Respondent as well as from other investors had in fact been siphoned and diverted by the Directors and other persons responsible, for the day-to-day management of the Appellant company. As in the reply filed by the Appellant company to the petition, the Appellant company has categorically admitted that the letter dated 09.01.2012 was sent to the Respondent informing her to make balance payment and take possession of the flat. In such circumstances, we do not see as to how the present petition is barred by limitation. On the aspect of interest also, we do not find any merit in the contention of the Appellant that the Respondent is not entitled to interest on the sums paid by the Respondent which have been utilized by the Appellant ever since the year 2007. As noted by the learned Company Judge, the Respondent had itself demanded interest at the rate of 20% in the event the first installment of ₹ 2,25,000/- was not paid within a period of 30 days from the date of the demand.We accordingly affirm the findings of the learned Company Judge on the aspect of interest payable to the Respondent and reject the contention of the Appellant that the question of interest should be left to be determined by a Civil Court. Amount of interest awarded by the learned Company Judge at the rate of 12% per annum also appears to us to be reasonable and proper
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