SURESH CHANDRA AGRAWAL, J. - (1.) IN all these applications, the question which arises for consideration is as to whether the non -petitioners are entitled to claim set -off in these proceedings initiated by the Official Liquidator under Sections 446 and 447 of the Indian Companies Act, 1956 (here in after referred to as 'the Act') 1956.
(2.) M /s Ganpathy Saving and Finance Co. Pvt. Ltd. (here in after referred to as 'the Company') was incorporated as a Private Limited Company under the Companies Act, 1956 (hereinafter referred to as 'the Act') on 31 -10 -1974. The main object with which the Company was incorporated was to carry on the business of Financing. The Company used to enrol members under the Saving and Finance Schemes, namely, A -l Scheme and B -l Scheme initiated by it. Under A -l Scheme the member was required to deposit a sum of Rs. 10/ -per month for 60 months and the member who failed to deposit in contribution continuously for three months his member -ship can be terminated and in his place some other member would be enrolled. Those members who discontinued depositing their contribution before the completion of the entire period would be refunded the amount deposited by them after deducting 25% at the end of the period of the scheme. The members of the Scheme were entitled to take loan from the Company. A member could take a loan upto 50% of amount deposited by him without furnishing any security. A member could take double the amount of his deposit as loan on furnishing the surety of two members of the scheme. Loan could also be advanced to a member on the security of Insurance Policies, Government securities, Plant and Machinary, House, Plot and agricultural land. On those loans the members were required to pay monthly interest of the prescribed rate. Under the B -1 scheme a member was required to deposit Rs. 15/ - per month for a period of 50 months. The other conditions were the same as in the A -l Scheme. The non -petitioners No. 1 in these applications were members of the Savings and Finance Schemes of the Company and they had taken loan from the Company under those schemes and at the time of taking the loan it was agreed that they would pay interest @ 18% per annum on the loans advanced to them. The other non -petitioners in these applications had stood as surieties for repayment of the loan advanced to non -petitioners No. 1.
(3.) IN terms of resolution passed by the Board of Directors of the Company a petition was filed for winding up of the Company by a Director of the Company and in the said petition by order of this Court dated 29th January, 1975 the Official Liquidator was appointed as the provisional liquidator. On 19th December, 1980, an order was passed for the winding up of the Company. The Official Liquidator, thereafter filed these applications under Sections 446 and 447 of the Act for the recovery of the amounts payable by the non -petitioners towards loans which were advanced to non -petitioner No. 1 in these applications.;