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Issues: Claim for remuneration to Presingu family, interpretation of company resolutions, entitlement to remuneration under Companies Act, compensation for loss of office, disputed profits realized by claimant.
In this case, the applicant, representing the Presingu family, filed a claim before the official liquidator seeking recovery of remuneration amounting to Rs. 1,28,000 based on company resolutions. The resolution in question elected the applicant as managing director with a provision for payment of 10% of net profits to the Presingu family. The applicant contended that the family was entitled to this remuneration for several years, even though the company had not earned any profits. The official liquidator rejected the claim, stating that profits should be ascertained after deducting income tax liability. The applicant argued that the company had the authority to grant remuneration to the family under section 291 of the Companies Act. However, the court found that the resolution lacked clarity on the beneficiaries within the Presingu family and that the Companies Act did not provide for remuneration to individuals outside specific categories like managing directors. The court dismissed the claim for remuneration to the Presingu family. Regarding two other disputed amounts of Rs. 16,000 and Rs. 12,000, representing profits realized by a company managed by the applicant, the court noted that these entries were made in the company's books during the applicant's tenure as managing director. However, the court highlighted that the applicant failed to provide substantial evidence or testimony to support these claims. The court emphasized that the applicant did not raise any objections regarding these entries at the time they were made and dismissed these claims as well. Ultimately, the court upheld the official liquidator's decision to reject all three categories of the applicant's claims, concluding that there was no basis for interference. The court dismissed the application and ordered the applicant to bear the costs incurred by the auction purchaser.
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