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TMI Blog2010 (8) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... essary steps to mitigate the losses of the company in liquidation. Despite the efforts made by respondents they have to incur huge losses on account of trade difficulties. Therefore, from the explanation and the documents produced by the respondents it cannot be said that on account of mismanagement of affairs of the company in liquidation by the respondents, losses are caused. Therefore, respondents are not liable to pay the amounts claimed under the head ‘profit and loss account’. Application is partly allowed. The respondents are liable to pay a sum of ₹ 6,53,248 under the head ‘trade debts’ and another sum of ₹ 16,54,372 under the head loans and advances. - CA NO. 14 OF 2005 AND CO. P. NO. 139 OF 1997 - - - Dated:- 20-8- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The claim of the Official Liquidator is under the following heads: ( i ) Trade Debtors Rs. 6,53,248 ( ii ) Loans Advances Rs. 16,54,372 ( iii ) Miscellaneous expenditure Rs. 2,52,870.45 ( iv ) Profit Loss Account Rs. 1,62,20,409.42 7. Respondents in their statement of objections admit sum of Rs. 6,53,248 towards trade debts. As on the date of passing of the order of winding up the trade debts are time-barred. The explanation of the respondents that they did not had necessary funds with them to initiate legal action for recovery of the trade debts and as such they became time-barred is not an acceptable explanation. Therefore, the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eous expense . Therefore, the respondents are not liable under this head. 10. The Official Liquidator claimed a sum of Rs. 1,62,20,409 under the head profit and loss account . The Official Liquidator contends that this huge loss is on account of failure of the respondents in mismanaging the affairs of the company in liquidation. In support of this contention except the oral interested testimony of PW.1, there is no other evidence on record. As against this oral evidence of PW.1 respondents in addition to their oral evidence produced Ex.R6 to R8. A reading of Ex.R6 to R8 manifestly makes it clear that the respondent-Directors had taken necessary steps to mitigate the losses of the company in liquidation. Despite the efforts made by resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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