ASHOK KUMAR DEORA Vs. BALJIT SECURITIES LIMITED

JUDGEMENT

(1.) A short question of some significance has arisen in course of the proceedings. The application is by a petitioning-creditor seeking an order of winding-up and has been necessitated since the order of admission was passed some ten years back and an appeal from the order of admission stood dismissed in the year 2009. The petition was admitted on 7 August, 2002, when the court adjudged that the company was indebted to the petitioner in the principal sum of Rs. 1.75 lakh. The order of admission also found the company liable to pay interest at the rate of 18% per annum from the date of the payment by the petitioner to the company till the realisation thereof. Costs were also assessed against the company at 300 GM. In appeal, the operation of the order of admission was temporarily stayed but the appeal stood dismissed on 7 April, 2009, when the parties do not appear to have been represented before the appellate court. The appellate order recorded specifically that there was no illegality or irregularity in the order appealed against and found the appeal to be devoid of merit. The order of admission was affirmed.

(2.) The company has used an affidavit at the post-advertisement stage and supplementary affidavits have also been filed. The company seeks to rely on further documents that have been disclosed by it which would reveal, according to the company, that it has a complete defence to the claim. In the alternative and without prejudice to the company's submission that it has a more than plausible defence to the claim, it is suggested that the company may be permitted to furnish security of the entire sum as due today in terms of the order of admission and the claim of the petitioner relegated to a suit.

(3.) It is in such circumstances that the primary question that arises is as to whether a company can seek to re-agitate the merits of the claim and contest the same at the post-admission stage of a creditor's winding-up petition. The ancillary issue that is raised is whether the company can offer to furnish security at the post-advertisement stage and seek a direction that the claim be relegated to a suit.