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1959 (9) TMI 28 - HC - Companies Law

Issues Involved:
1. Whether the claim of Simplex Manufacturing Company (Private) Limited is within time.
2. What is the effect of the acquisition of the premises by Delhi Town Improvement Trust.
3. To what amount is the claimant entitled.

Issue-Wise Detailed Analysis:

Issue No. 1: Whether the claim of Simplex Manufacturing Company (Private) Limited is within time.

The court analyzed the applicability of Article 85 of the Indian Limitation Act, which provides a three-year limitation for claims based on "the balance due on a mutual, open and current account, where there have been reciprocal demands between the parties." The starting point of limitation is "the close of the year in which the last item admitted or proved is entered in the account." The rent was claimed from 1st April 1949 to 31st October 1956, with the last supply of castings on 28th August 1952. Therefore, the starting point would be 1st January 1953, and the limitation period would expire on 1st January 1956. The winding-up order was passed on 6th July 1955, making the claim within the limitation period as per Section 171 of the Indian Companies Act, 1913. The court concluded that the dealings between the parties were based on a mutual, open, and current account with reciprocal demands, thus falling under Article 85. Therefore, the claim was within time.

Issue No. 2: What is the effect of the acquisition of the premises by Delhi Town Improvement Trust.

The court found that the change in landlords, from Jamnadas Chhohemal to the Delhi Town Improvement Trust, did not affect the liability of Hindustan Company towards Simplex Company. The acquisition of the premises by the Delhi Town Improvement Trust was deemed irrelevant to the dispute. Therefore, this issue was decided against Hindustan Company and in favor of Simplex Company.

Issue No. 3: To what amount is the claimant entitled.

Simplex Company claimed Rs. 17,384-9-9 for unpaid rent and electric charges up to 31st October 1956, and Rs. 58,639 for damages for use and occupation from 1st April 1949 to 31st October 1956. The court was not satisfied with the evidence of damages exceeding the rent payable. The court also considered the provisions of the Delhi and Ajmer Rent Control Act, 1952, which restricts the rent to the standard rent unless lawfully increased. The standard rent was determined to be Rs. 35 per mensem, but this only applied from 14th September 1956 to the end of October 1956, as per Section 8(7) of the Act. The contractual rent included the use of the premises and the foundry, plant, and equipment. The court deducted Rs. 337-8-0 for the excess paid and determined that Hindustan Company was liable to pay Rs. 17,100 for unpaid rent and electric charges up to 31st October 1956. The official liquidator was directed to admit this claim and treat it with priority along with other creditors.

Conclusion:

The court directed the official liquidator to admit the claim of Simplex Company to Rs. 17,100 and follow the other directions in the order. There was no order as to costs.

 

 

 

 

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