OFFICIAL LIQUIDATOR, HIGH COURT OF KARNATAKA Vs. SMT. LAKSHMIKUTTY

JUDGEMENT

(1.) This appeal is by the official liquidator against the order of the learned company judge, made in Company Application No. 241 of 1973 in Company Petition No. 9 of 1969, in the matter of Efficient Financiers (P) Ltd. (In liquidation) (1975) 1 Comp LJ 198 (Karn).

(2.) In the course of the winding-up proceedings, the official liquidator applied to the court, on behalf of the company, for the issue of a direction to the respondent to pay the balance due by him under a chit fund account.

(3.) The respondent contended that he was entitled to claim set off to the extent of the sum paid by him to the company under another chit fund account. The question arose whether the respondent was entitled to a set-off. The learned judge answered the question in the affirmative, the legality of which is called in question in this appeal.