( 1 ) THE petitioner, namely M/s. Bharat overseas Bank Limited, represented by its manager, has filed this Company Petition under Section 433 (e) and 439 of the companies Act, 1956 (for short the companies Act ) read with Rule 95 of the companies (Court) Rules, 1959 for winding up of the respondent, namely M/s. Saritha synthetic and Industries Limited, on the ground that it has become insolvent and is unable to pay its debts.

( 2 ) THE factual matrix of the matter, lies in a very narrow compass, which runs thus:the petitioner is engaged in the business of corporate financing. On 9-3-2001, the respondent, which is engaged in the business of manufacturing and process of gray cloth fabrics and linen, has requested the petitioner to sanction a short Term Loan of Rs. 500. 00 lakhs. The petitioner sanctioned the Short Term Loan of rs. 500. 00 lakhs to the respondent, repayable within 90 days, subject to the condition of the respondent furnishing personal guarantee of its Managing Director, corporate guarantee and pledge of shares. The respondent in token of availment of the said Short Term Loan, executed Promissory note and furnished the personal guarantee of its Managin