MARUTI UDYOG LTD Vs. BLUE STAR LTD

JUDGEMENT

(1.) Giving benefit of the claim of set off to respondent No. 1 the learned Company Judge dismissed the petition of the appellant-company filed under Sections 446 and 468 of the Companies Act read with Rule 9 of the Company (Court) Rules, 1959. It is contended that the benefit of set off could not be granted against the company which was in liquidation and that the claim of set off preferred by the respondent was barred by time.

(2.) Some of the facts relevant in the case for proper adjudication of the controversy are that petitioner No. 1, that is M / s. Maruti Ltd. was ordered to be wound up and a provisional liquidator appointed on 22-7-1977. Upon final order of winding up dated 6-3-1978, the appellant herein acquired the undertaking of the wound up company by virtue of Maruti Limited (Acquisition and Transfer of Undertakings) Act, 1980 along with all rights, title and interest. The Accounts Books of the Company showed a balance of Rs. 4,556.62 recoverable from the respondent. The Official Liquidator sent a registered notice calling upon the respondent to pay the amount with interest at the rate of 12 per cent per annum from the date the amount fell due. The amount was not paid with the result that a petition for recovery was filed in this Court. In the written statement filed on behalf of the respondent, it was submitted that a sum of Rs. 22,617.66P. was due to it from the company in liquidation. As the amount had not been paid, set off without payment of Court- fee was pleaded.

(3.) On the pleadings of the parties, the following issues were framed: