1967 (10) TMI 31 - HC - Companies Law

Winding up Delivery of property to liquidator and Power to apply to court to have questions determined or powers exercised

Summary

Issues:
1. Whether the claim of the liquidator is barred by time?
2. What is the amount due from the respondent to the company (in liquidation)?

Analysis:

Issue 1:
The liquidator claimed that the respondent, who was appointed as the chief agent by the company, failed to render accounts and pay the money due. The respondent argued that the claim was time-barred as he ceased to be an agent in 1955, and the limitation period had expired before the company went into liquidation. However, it was found that the respondent continued to collect money on behalf of the company until 1956. The court held that the claim against the respondent was not barred by time as he had not ceased to be the agent of the company more than three years before the winding-up. The court also discussed the application under section 468 read with section 518 of the Companies Act, allowing the liquidator to seek payment from the respondent.

Issue 2:
Regarding the amount due from the respondent to the company, the court analyzed the detailed accounts and reports submitted. The local commissioner's report indicated a total claim of Rs. 6,249.61, out of which Rs. 5,000 was disputed. After further examination, it was determined that the respondent owed Rs. 2,003.14 to the company, excluding the disputed amount. The court clarified the calculation discrepancies and disallowed certain amounts that were not due from the respondent. It was concluded that the respondent was directed to pay the net amount due within three months, along with the costs of the company.

In the final judgment, the court ordered the respondent to pay Rs. 2,003.14 to the voluntary liquidator of the company within three months and also bear the costs of the company, including counsel fees.