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2011 (2) TMI 1259 - HC - Companies LawWinding up Official Liquidator filed the present petition under section 446(2) of the Companies Act for recovery of Rs. 11,23,000 with interest thereon at the rate of 18 per cent per annum from 1-4-1997 till its realization in full against the respondent who was appointed as a Director in the Company under liquidation.
Issues:
Recovery of outstanding loan amount with interest from a former director of a company under liquidation. Analysis: The judgment pertains to a petition filed by the Official Liquidator against a former director of a company under liquidation for the recovery of a loan amount and interest. The respondent, appointed as a Director in the company, was found to owe Rs. 9,75,000 as outstanding loan amount, out of a total of Rs. 12 lakhs advanced to him as a staff loan. Despite various notices and opportunities given to the respondent, he failed to respond or challenge the claim made by the Official Liquidator. The affidavit of the Deputy Official Liquidator remained unchallenged, further solidifying the claim against the respondent. The court found that the respondent had indeed received Rs. 12 lakhs as a staff loan, repaid Rs. 2,25,000, and still owed Rs. 9,75,000. Therefore, a decree was passed against the respondent for the outstanding loan amount. However, regarding the claim for interest included in the total amount of Rs. 11,23,000, the court noted the absence of a loan agreement specifying the interest rate agreed upon. While the Official Liquidator claimed interest at 18% per annum, the court found no basis for such a rate and rejected the claim. Although an agreement was presented showing an interest rate of 24% per annum, it was not pleaded in the claim petition, leading the court to disregard it for calculating interest. Consequently, the court disposed of the petition by passing a decree against the respondent for Rs. 9,75,000 with interest at the rate of 10% per annum from 1-4-1997 until its full realization. The claim for administrative expenses, lacking supporting material, was rejected by the court. The judgment highlights the importance of substantiating claims with appropriate documentation and adhering to legal procedures in matters of recovery and liquidation.
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