K.S.RAJU Vs. G.SAVITRI

JUDGEMENT

(1.) This is an appeal preferred by the opposite party, Sri K. S. Raju, who was shown as Chairman and Managing Director representing M/s. Nagarjuna Finance Ltd.

(2.) The case of the complainant in brief is that the complainants have deposited amounts on 18.11.96, 14.12.96 and 31.07.97, where under, the complainants 1,2 and 4 would get Rs.40,000/- each and the third complainant would get Rs.20,000/- towards maturity value, in all, Rs.1,40,000/-. On the date of maturity when they claimed the amounts, it was represented by the appellant that they have to approach the C.L.B (Company Law Board) for re-schedulement of payment. By virtue of the orders of the C.L.B, the deposits ranging up to Rs.10,000/- has to be refunded within 24 hours from the date of maturity in two equal monthly instalments. In fact, there was no notice issued to them by the C.L.B ( Company Law Board) before passing the said orders. It is contrary to principles of natural justice and not binding on them. When demanded, the appellant/opposite party issued a cheque for Rs.5000/- on 14.11.2002 towards part payment. However, the said cheque was dishonoured. Therefore, they filed the complaint claiming the amounts together with interest and costs.

(3.) The appellant filed IA 2482006 requesting the Court for deletion of his name on the ground that he was no more Director of the Company nor could represent the company having retired on 16.09.2000 evidenced under Form No.32 obtained from the Registrar of the Companies.