OFFICIAL LIQUIDATOR OF BIDAR SPECIAL ALLOYS STEEL (P.) LTD. (IN LIQUIDATION) Vs. SRI SARDER DHARNITH SINGH

JUDGEMENT

(1.) THIS application is filed under section 543(1) of the Companies Act to declare that respondents are liable to pay a sum of Rs. 6,58,542 with interest at the rate of 18 per cent p.a.

(2.) THIS court vide order dated 21 -1 -1999 in Co.P.No. 74/1995 passed an order to wind up the company in liquidation. The respondents are the Directors of the company in liquidation. After the order of winding up respondents filed statement of affairs. Though the Official Liquidator pointed out certain defects in the statement of affairs, the respondents failed to rectify the same. The Official Liquidator on the basis of the balance sheet as on 31 -3 -2000 noticed that on account of negligence, failure and misapplication of funds on the part of the respondents, the company in liquidation suffered loss to an extent of Rs. 6,58,542 and therefore he is before this court under section 543(1) of the Companies Act.

(3.) THE Official Liquidator examined one witness and produced certain documents. The second respondent examined himself as RW. 1 and produced certain documents. Heard arguments on both the side and perused the application papers.