The court disposed of company applications to set aside/modify an order by waiving interest after the petitioner secured a demand draft for the principal amount and pleaded lack of prior notice.
Order dated 20-03-2007 modified by waiving interest; execution petition closed after principal payment.
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The Hon’ble Sri Justice C.V.Nagarjuna Reddy Company Applicaton Nos.1100 and 1101 of 2014
Dated 25.08.2014
Between:
Sri Rajendra Kotwal
…Petitioner
And
M/s.Monarch Finlease Ltd.,(in liqn.) Rep. by the Official Liquidator, High Court of Andhra Pradesh Hyderabad and 2 others.
…Respondents
Counsel for the Petitioner: Mr.Dhulipalla V.A.S. Ravi Prasad
for Mr.N.Gangadhar
Counsel for respondent No.1: Mr.M.Anil Kumar, Counsel for
OL
The Court made the following:
Order:
Company Application No.1100 of 2014 is filed for setting aside Order, dated 20-03-2007, passed by this Court, in Company Application No.280 of 2007 in
Company Petition No.173 of 2001.
Company Application No.1101 of 2014 is filed for waiving the interest by setting aside Order, dated 20-03-2007, passed by this Court, in Company Application No.280 of 2007 in Company Petition No.173 of 2001.
It is averred in the affidavit, filed in support of these applications, that the applicant has not received notice in Company Application No.280 of 2007 and that for the first time, he came to know about passing of Order, dated 20.03.2007, in Company Application No.280 of 2007, on 04.07.2014, when he has received notice in the Execution Petition issued by the Court of the learned Principal District and Sessions Judge, Shimoga, Karnataka State. The applicant has averred that he is ready to pay the principal amount of Rs.1,61,942/- and that with the permission of the Court, he will hand over demand draft No.978590, dated 31-07-2014, taken out for a sum of Rs.1,62,000/- from the State Bank of Mysore, Shimoga Branch, to the learned Counsel for the Official Liquidator.
Having regard to the plea of the petitioner that he was not served with notice in Company Application No.280 of 2007, and as he has established his
bonafides by securing a demand draft for the principal amount, this Court is of the opinion that it would be in the interests of justice if Order, dated 20-03-2007, in Company Application No.280 of 2007 is modified by waiving interest.
Mr.M.Anil Kumar, learned Counsel for the Oficial Liquidator, has received the Demand Draft on the permission given by this Court.
For the abovementioned reasons, Order, dated 20-03-2007, in Company Application No.280 of 2007 in Company Petition No.173 of 2001 is modified by waiving interest. As the principal amount has been paid by way of Demand Draft as noted above, the Principal District and Sessions Court, Shimoga, Karnataka State, shall close the Execution Petition.
Both the Company Applications, accordingly, stand disposed of.
As a sequel, Company Application No.1102 of 2014 is disposed of as infructuous.
______________________ (C.V.Nagarjuna Reddy, J)
Dt: 25th August, 2014 LUR
1 issue framed by the court
Whether the impugned order should be modified to waive interest upon payment of the principal amount by a defaulting applicant who was not served notice earlier.
M/s.Monarch Finlease Ltd.
C.V.Nagarjuna Reddy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
