C.K.Banerji, J. - (1.) This is an appeal from the order dated 19th May, 1977, made by the court below, in an application made by the appellant under Sections 391 and 392 of the Companies Act, 1956.
(2.) One Balabux Singhania had made an application for the winding-up of Industrial Metal Works (P.) Ltd., the respondent above-named in this court. During the pendency of the said winding-up application the respondent made an application in this court under Sections 391 and 392 of the Companies Act, 1956, proposing a scheme of compromise and/or arrangement between the respondent and its secured and unsecured creditors. By an order dated 16th March, 1970, this court sanctioned the said scheme and/or arrangement as modified. By and under a hire purchase agreement dated 31st October, 1963, the appellant had made over to the respondent on hire-purchase basis certain machinery and it was a creditor of the respondent when the said scheme was sanctioned. Clause 5B of the said scheme provided as under : "The outstandings payable to National Small Industries Corporation will be paid at the rate of Rs. 20,000 per month commencing after from the date of handing over the possession of the factory and the withdrawal of the receivers."
(3.) The State Bank of India was a secured creditor of the respondent and was also entitled to a payment of its dues under the said scheme. There is no dispute that the respondent had paid to the appellant an aggregate sum of Rs. 2,80,199.67 in payment of the said outstandings to the appellant. The first of such payment appears to have been made on 21st January, 1971, and the last payment on 7th September, 1972. The appellant, however, claimed from the respondent a further sum of Rs. 1,03,499.95, inter alia, on account of additional interest and penal interest.;