Ansari, J. - (1.) This appeal is filed by M.F.L. Stock Broking Ltd., a company registered under the Companies Act, 1956 ('the Act') and having its registered office at Calcutta ('the company'). The appeal is directed against an order dated 28-4-1999 in C.P. No. 219 of 1998, whereby and where under on the application filed by the respondent-petitioning creditor, the learned Company Judge admitted the petition for a sum of Rs. 19,23,402.26 with agreed interest at the rate of 24 per cent per annum till the disposal of the application and thereafter at the rate of 8 per cent per annum till the entire dues are paid. The company was granted liberty to pay the dues of the petitioning creditor on or before 15-5-1999 and in default thereof, it was directed that the company shall be at liberty to publish advertisements in the 'Telegraph' and in the 'Ajkar.
(2.) Brief facts of the case are as under; In 1995, the company had been admitted as a 'trading member' of National Stock Exchange India Ltd. (NSEIL) and a Clearing Member of the National Securities Clearing Corpn. Ltd. (NSCCL). The petitioning creditor is wholly owned subsidiary of NSEIL which is a recognised Stock Exchange. All clearing of transactions in sa1 and purchase of securities conducted through the said NSEIL ark through the petitioner. The principal objects of the company are, inter alia, to carry on and undertake business as stock brokers, sub-brokers, portfolio managers, investment consultant, managers to issue.
(3.) The company as Clearing Member conducted diverse transactions in sale, purchase and clearing of securities between July, 1995 to March, 1997. In the course of trading, the company undertook various defective transactions. By a notice dated 9-7-1997, the petitioner was informed that an amount of Rs. 64,86,497.77 is due from the company to NSCCL and further an amount of Rs. 2,40,043 was due by the company to NSEIL as on 2-7-1997. The details whereof were given in the annexures to the said letter which has been marked as annexures 'B' to the application filed under section 433 of the Act. The company was advised to pay the amount by 25-7-1997, failing which action would be initiated for declaring the company as defaulter.;