TMI Blog1997 (3) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... at the respondent-company approached the petitioner through their broker for a short term intercorporate deposit for a period of three months at the interest rate of 20 per cent, per annum. The petitioner made a deposit of Rs. 25 lakhs with the respondent company repayable after three months and bearing the interest rate of 20 per cent, per annum. A receipt dated September 27, 1993, acknowledging the deposit was sent by the respondent company to the petitioner. Before the expiry of three months the petitioner informed the respondent that the deposit would mature on December 26, 1993, and sent the deposit receipt duly discharged to enable the respondent-company to arrange for the payment of the principal sum together with interest accrued th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany to show cause why this petition may not be admitted and advertised. In pursuance of the show-cause notice the respondent company put in appearance and filed an application praying that they may be permitted to deposit the balance amount of Rs. 10 lakhs and the arrears of interest amounting to Rs. 2,49,315.06 in three installments. The request was allowed and it is not disputed that the respondent company has during the pendency of the present petition, deposited the amount of Rs. 10 lakhs towards principal and Rs. 2,49,315.06 towards interest till June 26, 1994. The petitioner, however, disputed that the entire amount has been paid by the respondent company. It was stated by them that out of the amount of Rs. 15 lakhs paid by the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent has mainly submitted that the deposit was to expire on June 26, 1994, and after the said date no amount of interest was liable to be paid thereon. There was no agreement between the parties that the interest will continue to run even after the said date and till the date the entire amount is paid to the petitioner. It has been further submitted that while making payment of Rs. 15 lakhs by means of two cheques dated October 3,1994, and October 7, 1994, it was clearly stated that the aforesaid sums were being paid towards the principal and, consequently, the petitioner could not have appropriated the said sums towards interest. Reliance has been placed on sections 59 and 60 of the Contract Act. Secondly it was urged that a winding up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first pre-requisite for exercising the jurisdiction of the court under section 433 of the Companies Act is to see that a prima facie debt against the respondent has been established. If the debt is not yet ascertained and is bona fide disputed the proper forum to decide the same is the civil court. In the present case, the petitioner has already filed a civil suit and the questions whether any interest is payable after June 26, 1994, and whether the petitioner can appropriate the amount received from the respondent first towards interest and then the balance towards the principal being disputed bona fide, the same ought to be decided by the civil court. Learned counsel for the respondent has cited a number of authorities on the question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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