2004 (1) TMI 395 - HC - Companies Law

Summary

Issues:
Claim for payment by Official Liquidator from respondent M/s. Karnataka Electricity Board; Maintainability of application; Dispute over transfer of deposited amount to M/s. Pathi Silks; Liability of respondent to return deposited amount; Claim for interest on the deposited amount.

Claim for Payment by Official Liquidator:
The Official Liquidator of a company under liquidation filed an application seeking payment of Rs. 12,894 from the respondent, M/s. Karnataka Electricity Board. The amount included Rs. 10,530 deposited by the company with the respondent, along with interest and notice charges. The respondent objected, denying awareness of the winding-up order and claiming the amount was transferred to M/s. Pathi Silks. The respondent sought to implead M/s. Pathi Silks, which was allowed. The matter was to be posted for an enquiry regarding evidence.

Maintainability of Application:
The respondent argued that an enquiry was necessary, but the court disagreed, stating that an enquiry is needed only when there is a dispute between the parties. The undisputed fact was that the deposited amount was transferred to M/s. Pathi Silks. The legal position post a winding-up order was clear, with the Official Liquidator having control over the company's affairs.

Dispute over Transfer of Deposited Amount:
The respondent claimed that the amount was transferred to M/s. Pathi Silks at the request of the company under liquidation. However, the court held that such actions by the respondent at the request of former directors did not absolve their liability towards the company under liquidation. The liability of the respondent continued in law, and no further enquiry was required.

Liability of Respondent to Return Deposited Amount:
The court determined that the respondent must return the actual deposit of Rs. 10,800 to the Official Liquidator, along with interest. Interest was to be calculated from the date of the winding-up order until the date of realization. The court ordered interest at 6% per annum on the principal sum of Rs. 10,800 from September 1, 1996, until the date of realization, as per the Official Liquidator's claim.

Claim for Interest on Deposited Amount:
The court held that interest on the deposited amount was payable from the earliest occasion when the respondent was required to return the amount, upon receiving a notice from the Official Liquidator demanding payment. Interest was ordered at 6% per annum on the principal sum of Rs. 10,800 from September 1, 1996, until realization. The court ordered payment accordingly.