M.V. SASTRY, MASULIPATAM Vs. M/S. MURLIDHAR JHUN JHUN WALA (P) LTD., MADRAS

JUDGEMENT

(1.) This appeal is directed against the judgment of our learned brother, Satyanarayana Raju, J., in Company application No. 89 of 1960 in O. P. 11 of 1956.

(2.) The material facts may be shortly stated. The company called the East Coast Transport and Shipping Company (hereinafter referred to as "the company") started in the year 1937 was carrying on stevedoring business at Masulipatam Port. By an order made by this Court in O. P. No. 11 of 1956 on 08-02-1957 this company was directed to be wound up under the provisions of the Companies Act, 1956. In the public auction held on 24-01-1959, all the assets and good-will of the company were purchased by the appellant for a sum of Rs. 3,01,000/- subject to the liabilities.

(3.) The Official Liquidator issued a general notice calling upon the creditors of the company to prove their claims, if any. Pursuant to this notice, the respondent, a constituent of the company and who had a running account with the company, preferred a claim for a sum of Rs. 20,648-15-0. The Official Liquidator, by his order dated 15-07-1960, allowed his claim to the extent of Rs. 10.662-14-0 rejecting the rest of the claim.