GOPIKISHAN S DAMANI Vs. A K MENON

JUDGEMENT

(1.) On 31st March, 1992, the appellant owed respondent No. 2 (Dhanraj Mills Private Limited) a sum of Rs. 90,48,631/-. Under the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, Dhanraj Mills Private Limited was notified.

(2.) After notifying Dhanraj Mills Private Limited, a public notice was issued on 10th September, 1992 by the Custodian calling upon all debtors of notified parties to inform the Custodian the amounts due by them to the notified party and to pay the same to the Custodian.

(3.) The appellant did not make any payment. According to it, on 22nd February, 1993, it received summons from Income-tax Department asking it to forward some documents relating to the transactions between the appellant and the notified party. Copies of the accounts between the parties were forwarded on 2nd March, 1993. However, on 3rd August, 1994, letter was received by the appellant from the Custodian whereby the Custodian demanded an amount of Rs. 95,58,631/- stated to be outstanding and due from the appellant herein. The appellant was also informed that in cases of belated payments the Special Court ordered payment of interest at the rate of 24 per cent.