- (1.) THIS is an application under Section 543 of the Indian Companies Act, 1956, by the Official Liquidator of Messrs. Jaipur Vastra Vyopar Sangh Ltd. , in liquidation hereinafter referred to as "the Company", for examination of the conduct of respondent Shyam Sunder Lal Patodia, who is a past director of the Company, and for an order compelling him to restore the money, with interest at such rate as the court thinks just, or to contribute such sum to the assets of the Company by way of compensation in respect of misapplication, retainer or breach of trust as the court-may think proper.
(2.) THE Company was registered under the Jaipur Companies Act of 1942. It is not in controversy that the provisions of that Act were similar to those of the Indiars companies Act, 1913, and that the respondent was the Managing Director of the company from March 21, 1946 to December 31, 1948.
(3.) THE Company is a public company and it has been alleged that, taking undue advantage of his position as its managing director, the respondent took and utilised Rs. 2,07,832/- for his personal use and thereafter transferred the money in the name of his father Rameshwar Das Patodia on April 29, 1948. It has also been alleged" that the respondent took Rs. 19,588/4/6 from the funds of the company. Both the sums were not repaid, and this is why it has been contended that the respondent has misapplied, retained and became liable and; accountable for the money of the Company. An order for the winding up of the Company was made on March 9, 1960, and it has therefore been prayed that this Court should examine into the conduct of the respondent and make the aforesaid order under section 543.;