C R E WOOD CO PRIVATE LIMITED Vs. SARDAR IQBAL SINGH
HIGH COURT OF DELHI
C.R.E.WOOD COMPANY PRIVATE LIMITED
SARDAR IQBAL SINGH
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(1.)This is a complaint under Section 455(5) of the Companies Act 1956 by the Official Liquidator representing the C.R.E. Wood Co. Pvt. Ltd. now in liquidation, against Iqbal Singh and Ranjit Singh. The allegations are that these persons being the directors of the said company did not file the statement of affairs and therefore have committed offence under Section 454(5) of the Act.
(2.)C.R.E. Wood Co. Pvt. Ltd. was ordered to be wound up on 6-4-1977 on a petition moved by the Dena Bank Ltd., claiming to be the creditor. Under Section 454(3) of the Companies Act, its statement of affairs should have been submitted within 21 days of the making of the winding up order by one or more of the persons who were at that time the directors, manager, secretary or chief officer of the company. That period of 21 days could be extended to a maximum period of three months on the ground of special reasons. No statement of affairs however was filed within the period prescribed nor any extension obtained. A notice dated 10-11-1980 was aswell served by the Official Liquidator on the two accused to show-cause why prosecution should not be initiated against them for their failure to file the statement of affairs. There was no response. The present complaint was then filed on 15-1-1981. During its pendency, Iqbal Singh accused No. 1 filed a statement of affairs on 11-5-1982. This was on the basis of what the Chartered Accountants of the company had compiled.
(3.)The substances of allegations against the accused was put to them by the Court during the course of the trial on 13th November 1981 and it was to the effect that they as directors of the company in liquidation though obliged to file the statement of affairs under Section 454 of the Companies Act failed to do so. Both of them denied that they were directors of the company at the time when the order of winding up was more, and therefore disowned their responsibility to file the statement of affairs. Ranjit Singh accused altogether denied that the had anything to do with the company while lqbal Singh stated that he was only a technical director and was permanently residing at Simla and had no records available and therefore did not know anything.
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