Decided on April 16,1970

Hindusthan Heavy Chemicals Ltd. Appellant
Krebs And Cie S.A., Paris Respondents


R.M. Datta, J. - (1.) This application has been made by the Hindus -than Heavy Chemicals Limited for stay of the winding up proceedings initiated against it by Krebs & Cie S.A., Paris (hereinafter called the Respondent).
(2.) The facts are as follows: By a written agreement dated May 20, 1959, the Respondent was entrusted with, the installation of Caustic Soda Chlorine plant at Khardah. A sum of Rs. 2,12,774 -40 P. became due and owing to the Respondent on account of delegation fees. Under a scheme of arrangement sanctioned by an order of this Court in respect of the said Hindusthan Heavy Chemicals (hereinafter called the said company) the said company, inter alia, agreed to pay up the Respondent's claim in terms thereof. The said scheme was sanctioned by this Court on January 17, 1966. The company applied to the Reserve Bank of India for sanction for payment to the Respondent. By its order No. Pass/A7/81/1330 -68 dated November 12, 1968, the Reserve Bank of India gave its sanction for payment to the Respondent in non -transferable rupee account from and out of the company's account.
(3.) It appears that under the said scheme the dues of the unsecured creditors were to be paid off by three annual equal instalments. The first of such instalments was payable within three weeks from the date of the sanction of the scheme. In spite of the said sanction being given by the Reserve Bank of India the company did not pay any amount to the Respondent. By its letter dated January 14, 1969, a notice under Sec. 434(1) of the Companies Act, 1956, was served on the company by the Respondent under the signature of its President one E. C. Krebs. The Respondent has been described in the letterhead as: Krebs 61 Rule Pouchet 75 Paris 17 The opening words of the said notice are as follows: Take Notice That We Messrs. Krebs & Cie Paris, a company duly registered under Law of 24.7.1966 and decree of 23.3.1967 relative to commercial companies, entered into Commercial Register of PARIS under No. 56 B 3524....;

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