2018 (11) TMI 1861 - HC - Companies Law

Appeal by former Director - Person describing himself as a former Director of the Company which has already been wound up - HELD THAT - Way back on 29th August 2003, the winding up order was passed with reference to the company in question. The Official Liquidator (OL) had taken over the entire assets of the company in question many years ago. Thereafter, the learned Single Judge has been dealing with the claims of creditors. To entertain, at this stage, any appeal by one of the former Directors on the basis that he was a major shareholder, cannot be legally countenanced - Appeal dismissed.

Summary

Issues:
1. Locus standi of a former Director to question a winding-up order in individual capacity.

Analysis:
The judgment revolves around the issue of the locus standi of a former Director to challenge a winding-up order in his individual capacity. The appellant, a former Director of the company in question, filed an appeal against an order dated 12th October 2018 related to winding-up proceedings. However, the court highlighted that the appellant failed to demonstrate any legal provision allowing a former Director to challenge such an order independently. The court emphasized the lack of locus standi of the appellant in bringing forth the appeal, especially concerning the claims of creditors being dealt with in the winding-up proceedings.

Moreover, the court noted that the winding-up order for the company was issued back in 2003, and the Official Liquidator had taken control of the company's assets long ago. The court further emphasized that considering the appellant's appeal solely based on being a major shareholder was not legally permissible at this stage of the proceedings. Consequently, the court concluded that entertaining an appeal from a former Director at this juncture, especially on the grounds of being a major shareholder, was not legally justifiable.

In the final disposition, the court declined to entertain the appeal and dismissed it along with all pending applications. The judgment underscores the importance of establishing proper legal standing and authority before challenging orders in winding-up proceedings, particularly for former Directors seeking to question such decisions independently.