OFFICIAL LIQUIDATORS, BARODA BATTERIES LTD. Vs. REGISTRAR OF COMPANIES, GUJARAT STATE

JUDGEMENT

(1.) THIS appeal is directed against the order of the learned District Judge, Baroda, rejecting the application made by the applicants for granting relief for the default under section 244B(7) read with section 281 of the India Companies Act, 1913, hereinafter referred to as 'the old Act'.

(2.) THE facts giving rise to this appeal briefly stated are as under :

(3.) SO far as the second objection raised by the Registrar about the amount of unclaimed dividend not being deposited in the Reserve Bank within six months after the expiry of six months from February 20, 1961, they stated that they were under the bona fide impression of law that the amount of unclaimed dividend had to be deposited at the time of dissolution of the company. They had tried their best for a long time to trace and contact the creditors or claimants under the directions of the court to make their dues available to them. They admitted that they have acted wrongly but they contended that they had acted honestly and reasonably in both the matters complained of. Notice was issued to the Registrar of Companies who resisted the said application. It was contended by the Registrar that the old Act was repealed and, therefore, section 281 of the old Act does not survive and the application given by the applicants under section 281 of the old Act was misconceived and not tenable in law. In the alternative, it was urged that assuming that section 281 of the old Act applied, no relief under that section should be granted to the liquidators because the official liquidator cannot be said to be an officer of the company and, therefore, no relief should be granted. The learned judge accepted the contentions of the applicants so far as retention of the amount in their hands and condoned breach of the provisions of section 244A of the old Act. The learned judge, however, with regard to the breach committed under section 244B of the old Act, came to the conclusion that the official liquidator was not an officer of the company and, therefore, section 281 of the Act under which they claimed relief would not apply. The learned judge, therefore, dismissed the application so far as relief for default under section 244B(7) of the old Act was concerned. Against that order rejecting the relief for default under section 244B(7) of the old Act, the liquidators have preferred the present appeal.