9911796707
TMI Blog1967 (10) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... ell the shares of the company and invest funds in the purchase of the goods of the kind in which the company was trading, namely, cycles, sewing machines, radio, etc., on hire-purchase system. The chief agent was also under contract to contribute himself to the funds of the company on certain basis; that the respondent was appointed as a chief agent in 1951, for the area of Phagwara extending up to Hoshiarpur ; and that in furtherance of his appointment and the terms of contract between the company and the respondent, the respondent carried on the work of the chief agent and contributed Rs. 11,000 up to the end of February, 1954, towards the business of the company. The chief agent was to be supplied with receipt books for issuing provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 paise was put in against Sadhu Singh. As reported by the local commissioner, Rs. 1,249.61 paise was the total amount claimed in addition to Rs. 5,000, which were claimed as payable to Sirsa head office according to the resolution passed by the board of directors on 18th of May, 1955, referred to above, that is a total amount of Rs. 6,249.61 paise. The question whether a sum of Rs. 5,000 was due to the company or not was left open to be decided by the court. With regard to remaining Rs. 1,249.61 paise, it was stated by the local commissioner that this amount consists of various items mentioned in the claim and the same were accepted as correct. Again it was agreed between the parties that the company did not hold any claim of Rs. 898.08 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner, were not disputed, apart from Rs. 898.08 paise, comes to Rs. 2,003.14 paise. On behalf of the company, however, it was urged that it was never agreed that Rs. 898.08 paise were not due from Sadhu Singh, as stated by the local commissioner. On the record of the local commissioner, I do not find any agreement to that effect. However, it is obvious that this amount is claimed without there being any basis for it because it is stated that the amount is still to be realised. Sadhu Singh is not to be made liable for what he may have yet to realise but he has to render account of the amounts actually realised by him on behalf of the company. This item of Rs. 898.08 paise was rightly disallowed by the local commissioner. After deducting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put in by the company show that he continued to collect the money on behalf of the company till 17th of August, 1956, and the winding-up having taken place on 26th of March, 1959, the claim against the respondent was not barred even if it be taken, for the sake of argument, that three years was the period of the limitation. Having looked into the accounts, I am inclined to agree with this contention. Agency comes into existence either expressly or impliedly. If Sadhu Singh continued to work on behalf of the company, as is clear from his correspondence, R.W. 1/3 and accounts, he would continue to occupy the position of an agent and the period of limitation will begin when the agency ceases or the agent is called upon to render accounts. I am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt". Section 518 occurs under the heading "Provisions applicable to every voluntary winding up". The sole question for determination, therefore, is whether the words "any other matter" occurring in section 468 can cover an order to be made in voluntary winding up. Section 468 of the Companies Act corresponds to section 258 and section 518 to section 307 of the English Companies Act of 1943. While dealing with section 258 (corresponding to section 468 of our Act), in Buckley on the Companies Acts, Thirteenth Edition, at page 537, it is stated: "Section 307 (corresponding to section 518 of our Act) enables an order under this section 258 (equivalent to section 468 of our Act) to be made in voluntary winding up". In Vemuri Parandham ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calls. Both matters relate to the recovery of amounts due to the company. I am, therefore, inclined to take the view that read with section 518 a voluntary liquidator can move an application, on which the court can make an order under section 468. The main contention of the learned counsel for the respondent thus being negatived, the only other question that remains for consideration is whether there is any limitation period fixed for the court passing such an order and if so, what that provision is ? The contention of the learned counsel for the respondent was that these proceedings are in the nature of a suit, for which he has to take the permission as laid in section 512 and for a suit, limitation prescribed in the Limitation Act is th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
