SYMPHONY COMFORT SYSTEMS LTD Vs. STATE

JUDGEMENT

(1.) THE petitioner-company has presented this petition under Section 17 of the Companies Act, 1956, to this Bench for confirmation of the alteration of clause III of the memorandum of association of the company for alteration of its objects clause as approved by special resolution passed in accordance with Section 189 of the Companies Act, 1956, at its annual general meeting held on December, 27, 1995.

(2.) New Precision Pumps and Motors, the objecting creditor, vide affidavit dated April 26, 1996, has stated that the petitioner-company failed to release a sum of Rs. 5,94,521 due from it as on March 31, 1996. During the course of hearing on various dates the petitioner-company filed its affidavits dated November 26, 1996, January 18, 1997, February 17, 1997, and March 6, 1997, in reply to the affidavits dated April 26, 1996, December 31, 1996, February 18, 1997, and February 22, 1997, filed by the above objecting creditor. It is noted that the petitioner-company served individual notice under regulation 36(1)(ii) of the Company Law Board Regulations, 1991, for Rs. 5,94,521 to the above objecting creditor, whereas the petitioner-company has to recover a sum of Rs. 1,58,271 from the above objecting creditor after adjusting debit entries towards defective goods returned to the objecting creditor. The petitioner-company also filed a civil suit on March 6, 1997, in the city civil court at Ahmedabad for recovery of the amount from the objecting creditor. The petitioner-company furnished a certificate dated February 19, 1997, from their statutory auditors to the effect that there is a debit balance of Rs. 1,58,271 as on March 31, 1996, and also as on date for recovery from the above objecting creditor. There are claims and counter claims amongst the petitioner-company and its above named objecting creditor and one of the parties have already moved before the court. This forum cannot adjudicate such claims. I am satisfied that the petitioner-company is financially sound and in the event any claim of the objecting creditor materialises, the company would be able to meet the same.