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TMI Blog2023 (12) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... of KARNATAKA STEEL WIRE PRODUCTS VERSUS KOHINOOR ROLLING SHUTTERS ENGG. WORKS [ 2002 (11) TMI 355 - SUPREME COURT ] held that 'The legislature, by way of an amendment, brought into force the provisions of Section 458-A, so that an official liquidator, who is supposed to be in custody of the assets and liabilities of the company, would be able to file a claim on behalf of the company, which was legally enforceable on the date of the winding up, after excluding the period, indicated under Section 458-A of the Companies Act, so that the company or its shareholders will not suffer any loss. But by no stretch of imagination, the said provisions contained in Section 458-A can be construed to mean that even a barred date (sic debt) or a claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Febin M. Varghese with Mr. Dhiraj A, Advs. for non-applicant Kotak Securities. Mr. Sandeep Aggarwal with Mr. Jai Sahai Endlaw, Advs. in CO. APPL. 1841/2017. Ms. Ruchi Sindhwani, Sr. Standing Counsel with Ms. Megha Bharara for OL. JUDGMENT 1. The present application has been moved under Section 446 of the Companies Act, 1956 The Act on behalf of the Official Liquidator OL against a debtor of the company (in liquidation) i.e., M/s Grandeur Interiors (P) Ltd., seeking recovery of an amount of Rs 80,00,000/- as principle, with interest @18% per annum till the date of realization, along with the Administration Expenses incurred by the Official Liquidator. BRIEF FACTS: 2. Shorn of unnecessary details, in the instant matter arising out of an appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld therefore, refund the sum of Rs. 80,00,000/- along with interest @ 18 per cent per annum till the date of realization. SUBMISSIONS: 4. On behalf of the applicant/OL, it has been submitted that although a notice was served upon the respondent/debtor company on 12.07.2012, and thereafter, on 01.06.2017 to pay the amount of Rs. 80,00,000/-, the debtor M/s Grandeur Interiors (P) Ltd. has failed to do the needful and has neglected to refund the said sum to the applicant company. 5. On the other hand, a reply has been filed on behalf of M/s Grandeur Interiors (P) Ltd. along with supporting affidavit of its Director dated 26.09.2018 wherein the application is opposed. It stated on behalf of the respondent/debtor that the order for the supply o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te on which the winding up order is made (both inclusive) and a period of one year immediately following the date of the winding up order shall be excluded. 7. A careful perusal of the aforesaid provision would show that it has overriding effect over the provisions of the Limitation Act and in proceedings under the Act, the period of limitation would commence from the date of passing of order on winding up and excluding a period of one year immediately following the date of winding up order. The Supreme Court in the case of Karnataka Steel Wire Products v. Kohinoor Rolling Shutters Engg.Works (2003) 1 SCC 76 held as under: 4. On a plain reading of the provisions contained in Section 458-A of the Companies Act, it is crystal clear that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the instant matter, evidently, the order for winding up was passed by this court on 03.06.2011, whereby an OL was appointed as Provisional Liquidator. It is uncontroverted that the payment was made to the respondent company on 10.04.2008, and therefore, the initial period of limitation for re-claiming the amount was three years i.e., 10.04.2011, which of course was before the order of winding up was passed. 9. On a careful perusal of Section 458A of the Act, subsequent to the Provisional Liquidator being appointed and taking over the charge, the period of limitation for claiming the recovery of such amount commenced on 03.06.2011 and extended by another year, eventually, by all means expired on 03.06.2015. It is also borne out from the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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