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TMI Blog2012 (12) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... application filed by the Official Liquidator deleting name of the deceased respondent late GC Bhandari on 05/12/2008, requires re-consideration. The order passed way back on 05/12/2008 deleting name of respondent No.1 late GC Bhandari, in these facts and circumstances, deserves to be recalled. - SB CO. APPLICATION NO. 29 OF 1993, SB CO. PETITION NO. 2 OF 1986 - - - Dated:- 11-10-2012 - AJAY RASTOGI, J. Amod Kasliwal for the Applicant. J.K. Singhi, Ravindra Pal and Sandeep Taneja for the Respondent. ORDER 1. Instant company application No.548 dt. 06/01/2012 has been filed by the Official Liquidator u/R.9 of the Companies Court Rules,1959 read with Sec.151 CPC for recalling the order dt.05/12/2008 deleting the name of Sh.GC Bhandari, who was one of the promoter director of M/s B.T. Conductors Pvt. Ltd (Company in liquidation), died during pendency of the proceedings on 07/02/2007. 2. The brief facts that culled out from the averments made in the application indicates that the original Company Application No.29/1993 was filed u/Sec. 542 543(1) of the Companies Act, 1956 for repayment and restoration to the Company in liquidation impleading the directors o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative of late GC Bhandati was taken on record. However, the matter was not put to rest and immediately after the legal representative was served, written objections came to be filed that once the respondent-director late GC Bhandari stood deleted from the array of respondents vide order dt.05/12/2008 and this fact was not brought to the notice of the Court while application under O.22 R.44 CPC was considered and his legal representative was taken on record and this Court also finds substance in the submission made by legal representative who was taken on record pursuant to order dt. 29/07/2010 and after hearing the parties, the order passed by the Court on the application under O.22 R.4 CPC dt. 29/07/2010 came to be recalled vide later order dt.04/08/2011 and the matter has now come up on the application filed by the Official Liquidator u/R.9 of the Companies Court Rules,1959 read with Sec.151 CPC for recalling the order dt.05/12/2008 deleting the name of late GC Bhandari. 5. Mr. Amod Kasliwal, appearing for the Official Liquidator submits that the original company application No.29/1993 was filed u/Sec. 542 543(1) of the Companies Act, 1956 and these being summary proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egal representative could at the best be held liable confining to the estate of the deceased devolved upon her, the fact is that Mrs. Saroj Jain, as a legal representative, has not inherited the property of late GC Bhandari and even if she is allowed to be impleaded and prosecuted in the present proceedings, it will remain an empty formality and is not going to serve any purpose. 8. In counter, Mr. Amod Kasliwal submits that what will be the effect of the proceedings in the original company application initiated at the behest of the Official Liquidator, cannot be presupposed at this stage and the only question which has to be considered is as to whether in the capacity of legal representative, she can be impleaded as a respondent in the original Company Application No.29/1993. 9. I have considered the rival submissions made by counsel for the parties and have also considered the material available on record. 10. As regards the proceedings initiated against the directors of the company u/Sec. 542 543 of the Companies Act, 1956, the question as to whether such proceedings can be allowed to be continued after death of the any of the director against his legal representative an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no abatement of the liability on the death of the wrong-doer. When once the liability is declared it is open to the Official Liquidator to realise the amount due by resorting to Section 634 of the Act and Section 50 of the Code of Civil Procedure. In Tendolkar case this Court did not consider the effect of Section 634 of the Act which made the relevant provisions of the Code of Civil Procedure relating to execution of decrees applicable to orders passed by the Court under the Act." 11. The question regarding the rights of the legal representative in such proceedings being summary of civil nature, can be continued against the legal representatives as well confined to the estate of the deceased devolved in the hands of legal representative. 12. In the facts of the instant case, this fact was not brought to the notice of the Court either by the real younger brother TC Bhandari that the promoter director late GC Bhandari who died on 07/02/2007 has any legal representative and only prayed that the proceedings stands abated on account of his death in his application dt.17/04/2007. However, the second application came to be filed by the counsel appearing for late GC Bhandari an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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