1993 (11) TMI 187 - HC - Companies Law

Summary

Issues:
1. Whether the amount along with interest claimed in the petition is due from the respondent?
2. Whether the present petition is within limitation?
3. Relief sought.

Analysis:

Issue 1:
The claim petition was filed under section 446(2) of the Companies Act, 1956, by the official liquidator of a company in liquidation to recover the unpaid called amount with interest from the respondent. The company was engaged in the business of purchasing, selling, and hiring out various items. The respondent denied liability, claiming no supporting documents were attached to the petition. Evidence presented, including accounts and witness testimonies, established that the respondent had taken a loan of Rs. 20,400 from the company, with Rs. 16,245 still outstanding. The respondent's defense of only participating in a "committee" was refuted, and it was concluded that the amount was due, and the company had proven its case.

Issue 2:
The respondent argued that the petition was time-barred, as it was filed in 1992, beyond the limitation period. However, the court analyzed the provisions of section 458A of the Companies Act, which excludes certain time periods in computing limitation for suits related to winding up proceedings. Relying on precedents from Unico Trading and Chit Funds (India) P. Ltd. v. S.H. Lohati and New Kerala Roadways P. Ltd. v. K.K. Nanu, the court held that the petition was within limitation. The exclusion of time under section 458A, along with the three-year period under article 137 of the Limitation Act, rendered the petition timely.

Relief:
The court ordered the respondent to pay the outstanding amount of Rs. 16,245 along with interest at a rate of 12% per annum from the last transaction date. No evidence was presented regarding the agreed rate of interest, so the court determined the rate based on the prevailing circumstances in 1983. Additionally, no costs were awarded in the case.

This judgment highlights the importance of maintaining accurate records and adhering to statutory limitations in company liquidation proceedings.