TMI Blog1998 (3) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... ged in the claim has been admitted, it is contended that as per an agreement between the respondent and the claimant-company, the respondent had deposited Rs. 5,000 with the claimant with the specific understanding that the amount of deposit with interest thereon at 14 per cent. per annum will wipe off the entire amount due from the respondent to the claimant towards his kuri by the termination of the kuri in August, 1996. The respondent also contended that Rs. 6,500 claimed as principal amount in this case was not due from the respondent as on April 11, 1992, and after setting off the balance principal amount of Rs. 4,602 with interest thereon at 14 per cent. per annum till August 11, 1996, an amount of Rs. 882.09 is due from the claimant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondent, by the deposit of Rs. 5,000 with interest thereon at 14 per cent. per annum the entire balance kuri instalments due from the respondent will be wiped off and no amount is payable by the respondent towards the above kuri transaction. But counsel for the claimant submitted that the above contention of the respondent would have been accepted if the kuri continued till its natural termination and in view of the fact that the company went into liquidation and the winding up proceedings of the company started on April 6, 1993, the claimant-company under liquidation is not liable to pay any interest to any of its creditors or the subscribers who have made security deposit including the respondent and, therefore, the respondent is e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the claimant is that due to the intervention of the winding up proceedings in the meanwhile the respondent is not entitled to claim interest on the balance deposit amount from the date of commencement of the winding up proceeding, and, therefore, by setting off of that principal amount towards the kuri. instalments and interest thereon the respondent is liable to pay the balance amount. Counsel for the respondent vehemently argued that since there is a concluded contract between the claimant and the respondent much prior to the commencement of the winding up proceedings and there was nothing to be done by the parties towards the execution of the contract except the claimant to adjust the interest as well as the deficit amount to make up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest will wipe off the entire instalments due and the claimant can adjust the interest accrued on the deposit amount outstanding along with a portion of the deposit amount, if interest is found to be insufficient to discharge the instalments, on the passing of the winding up order the portion of the contract which was not completed by appropriation has come to an end and that portion cannot be enforced once the winding up order is passed against the company. If in fact, there was an agreement between the petitioner and the respondent that on the deposit of Rs. 5,000 bearing interest at 14 per cent. per annum with the claimant her entire liability to pay the instalments is discharged then and there, the respondent could have been absolved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Mills Agency v. Saraswati Soap and Oil Mills Ltd. [1954] 24 Comp Cas 450 ; AIR 1954 All 129, wherein a single judge of the Allahabad High Court has held that interest will run up to the date of the presentation of the petition in an insolvency case and up to the date of presentation of winding up petition in the case of an insolvent company and, therefore, interest can accrue up to the date of presentation of the winding up petition and not afterwards. A Division Bench of this court in Bombay Cotton (P.) Ltd. v. Ramach-andran Iyer [1963] KLT 268 has approved the above principle laid down by the Allahabad High Court and held that the order of adjudication shall relate back to and take effect from the date of presentation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are not entitled to interest from the company under liquidation either to be paid to them or to be set off towards the claim made by the company under liquidation against them. Therefore, this contention of the respondent is also not sustainable. The fact that the balance amount of Rs. 4,602 out of Rs. 5,000 deposited by the respondent was available on June 6, 1992, and the interest due prior to that date is credited by the claimant to the account of the respondent are not disputed. Therefore, the respondent is entitled to set off the amount of Rs. 4,602 and Rs. 537 being interest thereon from June 6, 1992, to April 6, 1993, the date of commencement of the winding up proceedings, towards the principal amount claimed in this case. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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