1995 (1) TMI 293 - HC - Companies Law

Summary

Issues:
1. Whether the petitioner-company is entitled to recover an amount of Rs. 1,14,298.81 together with interest at the rate of 12 per cent. per annum on account of goods supplied to the respondent as claimed in the petition?
2. Relief.

Analysis:

Issue 1:
The claim petition was filed by the official liquidator on behalf of the company for the recovery of Rs. 1,14,298.81 along with interest from the respondent. The company supplied goods to the respondent before going into liquidation. The official liquidator claimed that the respondent owed the company the said amount for the goods supplied. The respondent denied the liability, stating that the statement of account contained errors and discrepancies. The official liquidator maintained that the accounts showed the amount due. The court examined the evidence, including invoices and ledger accounts, to determine if the goods were received and payments made. The respondent admitted receiving goods as per some invoices but denied receiving goods mentioned in one invoice. The court held that there was no evidence to prove the receipt of goods mentioned in the disputed invoice. It emphasized that liability cannot be established solely based on entries in the books of account. Since there was no proof of receipt of goods and the statement of account contained errors, the court ruled in favor of the respondent, dismissing the claim petition.

Issue 2:
As the court decided against the company on the main issue, it dismissed the claim petition, leaving each party to bear their own costs.

In conclusion, the court ruled in favor of the respondent, dismissing the claim petition filed by the official liquidator on behalf of the company for the recovery of the amount claimed, based on lack of evidence to prove receipt of goods and errors in the statement of account.