RONALD D. COLACO S/O LATE F.B.L. COLACO Vs. OFFICIAL LIQUIDATOR M/S JANAMADHYAMA PRAKASHANA LTD., (IN LIQUIDATION) (ATTACHED TO HIGH COURT OF KARNATAKA) CORPORATE BUILDING, NO. 26-27, 12TH FLOOR, RAHJE TOWERS, M.G. ROAD, BANGALORE

JUDGEMENT

(1.) THESE applications are filed under Rules 6 and 9 of Companies (Court) Rules, 1959 praying for deletion of their names from the proceedings initiated under Section 543 of the Companies Act, 1956 ('the Act' for short). The applicants are the Ex -Directors of M/s. Janamadhyama Prakashana Limited (in liquidation). They are respondents No.7, 11 and 6 respectively in Company Application No. 867/2010 filed by the Official Liquidator under Section 543 of the Companies Act, for recovery of Rs. 5,66,04,164.01 (Rupees five crores sixty six lakhs four thousand one hundred sixty four and paise one only) from the respondents 1 to 15 jointly and severally alleging that, as per the balance sheet as on 31 -3 -2001, it shows that the respondents have fraudulently or dishonestly failed to hand over the fixed assets, instruments, cash, batik balance, current accounts, loan advanced, sundry debts and statement of accounts of the Company valuing of Rs. 5,66,04,164.01 (Rupees five crores sixty six lakhs four thousand one hundred sixty four and paise one only).

(2.) IN these applications, the applicants have contended that M/s. Janamadhyama Prakashana Limited was ordered to be wound up in COP 168/2004 filed by M/s. Amaravathi Sri Venkatesha Paper Mills Limited on 21 -11 -2005 by this court. The Official Liquidator attached to this Court has been appointed as Liquidator of the Company by virtue of Section 449of the Act. The Directors of the company, which was under liquidation failed to file the statement of affairs. The Official Liquidator after collecting the details from the Registrar of Companies, Bangalore addressed a letter to the Ex -Directors to submit the statement of affairs and to hand over the books of accounts and other statutory records. The Ex -Directors neither filed the statement of affairs nor handed over the books of accounts. The Official Liquidator initiated the proceedings under Section 454(5) and (5A) of the Act. Further, he also initiated proceedings under Section 543 for the recovery of a sum of Rs. 5,66,04,164.01 (Rupees five crores sixty six. lakhs four thousand one hundred sixty four and paise one only) on the basis of the balance sheet dated 31 -3 -2001.

(3.) IT is the case of the applicant in C.A. No. 291 /2011 that he ceased to be the Director of M/s. Janamadhyama Prakashana Limited (in liquidation) w.e.f. 01 -11 -2001. His resignation was accepted and Form No. 32 has been issued by the Competent Authority. He is a permanent resident of Abudhabi UAE. Further, he was not in -charge of day to day affairs of the Company. The Liquidation order has been passed on 21 -11 -2005 much after he ceased to be the director of the company. Further, this Court in C.A. No. 196/2006 dated 12 -07 -2010 acquitted this applicant from the proceedings initiated under Section 454(5) and (5A) of the Act on the ground that as on the date of winding up of the company, the applicant ceased to be the Director of the Company. However, without taking into consideration all these aspects of the matter, the proceedings have been initiated under Section 543 of the Companies for recovery of dues. He is not responsible for any of the transactions of the company from the year 2001. Further, there is no specific allegation of fraud or dishonesty on the part of the applicant in the proceedings filed by the Official Liquidator and sought for deletion of his name from the said proceedings.