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2016 (3) TMI 1463 - HC - Companies LawWinding up of company - inability to pay debts under Section 434(1)(a) of Companies Act - HELD THAT:- The learned Single Judge held that this was not an appropriate case for winding-up of the company on the ground of its inability to pay debts under Section 434(1)(a). In the present case, whilst there is no doubt that the respondent company had made an OTS offer, there is no material to suggest that this offer was accepted by the IDBI and so communicated. On the other hand, the IDBI in fact assigned the debt to Kotak Mahindra Bank, which later assigned it to the present appellant. On the other hand, the company’s counter claim is still pending. The record also shows that the appellant got its “foot into the door” metaphorically speaking, by offering to the Court which was reluctant to entertain the winding up proceeding- that it would be content accepting the said sum of Rs. 250 lakhs. However, the appellant was not agreeable for that amount and demanded a high rate of interest. This Court is unpersuaded by the submission that the Company Court overlooked the admissions, by way of the balance sheet issued by the respondent; it was shown during the hearing that the explanation for the so called credit liabilities were found in the notes to accounts, which disputed the liability and stated that the matter was pending before the Debt Recovery Tribunal. In these circumstances, it cannot be said that the requirements for entertaining a winding up proceeding, so as to compel the Court to admit the petition, had been made out. This Court finds no merit in the appeal. Any amounts deposited in Court by the respondent shall be refunded to it, with accrued interest. The appeal is dismissed.
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