JUDMENT: The applicant herein guarantor has filed the above application to set aside the Insolvency Notice No.76 of 2002 under Sec.9(2) of the Presidency Towns Insolvency Act.

2. In the affidavit filed in support of the above application it is stated that the principal debtor M/s. TTG Industries Limited is a Public Limited Company and on account of accumulated losses, the net worth of the said principal debtor was fully eroded and therefore a reference was made under Sec.15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter called as “the Act”) to BIFR and the reference was registered vide No.111 of 2001. The BIFR has also initiated further proceedings under Sec.16 (2) of the Act. The respondent herein had initiated arbitration proceedings against the first debtor Company M/s. TTG Industries Limited in A.P.No.17 of 1999, claiming a sum of Rs.76,51,296 together with interest at 3 % per annum. The award was passed on 4.8.2000, directing the petitioner herein to pay a sum of Rs.76,51,296 together with interest at 21% per annum from 1.12.1998, till the date of realisation.

3. It is further stated that questioning the said arbitration proceedings, an appeal wa

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