2002 (10) TMI 708 - HC - Companies Law

Summary

Issues:
1. Whether the claim of the official liquidator is barred by limitation?
2. Whether the applicant is entitled to the amount as claimed?

Analysis:

Issue 1: Claim Barred by Limitation
The official liquidator asserts that the application is within the period of limitation, calculated under the Limitation Act, 1963, and the Companies Act. The cause of action arose on August 30, 1984, with exclusions as per the Companies Act. The respondent argues that the application is barred by limitation due to a delay in filing. However, the court finds that the application falls within the prescribed period, considering the relevant provisions and dates provided by both parties. The court rejects the respondent's argument, emphasizing that the application is not time-barred.

Issue 2: Entitlement to Claimed Amount
The official liquidator claims a sum from the respondent for services rendered, which remains unpaid. The respondent disputes the claim, citing a lack of evidence and disputing the relevance of certain demands. The court reviews the details provided by the official liquidator, including bills, payments, and ledger entries. Despite the respondent's argument that each bill constitutes a separate cause of action, the court finds the continuous, mutual, and current nature of the account details credible. The court upholds the official liquidator's claim, awarding the amount due with interest from the date of the claim. The court bases its decision on the evidence presented and the continuous nature of the account, rejecting the respondent's contention.

In conclusion, the court rules in favor of the official liquidator, finding the application not barred by limitation and awarding the claimed amount with interest. The judgment highlights the importance of accurate record-keeping and the continuous nature of accounts in determining liabilities in such cases.