OFFICIAL LIQUIDATOR OF KADAMBI ELECTRONICS PRIVATE LIMITED (IN LIQUIDATION) Vs. K. DAMODAR AND ANOTHER

JUDGEMENT

(1.) HEARD the Counsel for the applicant and the Counsel for the respondents and perused the material on record.

(2.) THE present application under Section 543(1) of the Companies Act, 1956 (hereinafter referred to as 'the Act' for brevity) seeks a declaration that respondents 1 and 2 are jointly and severally liable to pay a sum of Rs. 13 lakhs under the head "Trade Debtors" along with proportionate interest from the date of winding up order and to pay a further sum of Rs. 2.10 lakhs under the head Loans and Advances' along with interest, and further to declare that the respondents are liable to pay Rs. 568 lakhs, under the head 'Fixed and Current Assets'.

(3.) THE Official Liquidator had issued several reminders to the respondents to rectify the defects, which were not complied with. The Official Liquidator would contend that, on examination, it was found that the respondents were due of the amounts aforesaid under the several heads claimed. Since the respondents have failed to deliver the above assets of the company, the said assets could not be sold by the Official Liquidator. These amounts are endorsed by the respondents themselves in their statement of affairs. It is therefore to be presumed that the respondents have misapplied or retained or become liable or accountable for any money or property of the company and hence, they are guilty of misfeasance or breach of trust in relation to the company and would be hence liable to make good the loss suffered by the company in liquidation.