1. This winding up petition has been filed by Mr. J.R. Srinivasa, an ex-Director of the respondent company Sri Gururaja Enterprises Pvt. Ltd. seeking winding up of the respondent company on account of the alleged failure to pay interest at 24% p.a. on the admitted liability of Rs.75.50 lakhs due by the respondent company to the petitioner, against the loan advanced by the petitioner to the respondent company.

2. The case set up by the petitioner in the present petition is that the petitioner Director advanced a sum of Rs.1,41,00,000/- to the respondent company to square up the outstanding dues of Andhra Bank which had initiated action against the respondent company under the Securitization & Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 claiming a sum of Rs.2,64,69,938/- and no written agreement for the loan advanced by the petitioner to the respondent company was executed. But against the said advance of Rs.1.41 crores, respondent company had paid only a sum of Rs.65.50 lakhs and thus, the balance sum of Rs.75.50 lakhs remained outstanding which was duly reflected in the books of account of the respondent company and despite service of legal