N.K.SODHI, J.:-

1. Whether the lease agreement dated 6-2-1988 executed between the petitioner and M/s. P. S. B. Paper Mills Private Limited, Faridabad, the respondent herein (for short, the Company) is in effect and in substance a loan transaction, is the primary question that arises for determination in this petition filed under Sections 433, 434 and 439 of the Companies Act, 1956 (hereinafter called the Act) for the winding up for the company on the ground that it is unable to pay its debts.

2. Facts giving rise to this petition may first be noticed. The petitioner is a leasing and hire purchase Company incorporated under the provisions of the Act with its registered office at New Delhi. It is carrying on its business in terms of the objects mentioned in its Memorandum of Association and it has amongst others an object of giving on lease all kinds of plant and machinery, motor vehicles, marine engines, marine boats, trawlers, launching ships, vessels, barges, earth moving equipment, open cast mining equipment, compressors, drilling machines, industrial gas cylinders and any other equipment that the Company may think, fit. The Company approached the petitioner with a propo