OFFICIAL LIQUIDATOR OF M/S. SPAN PROJECTS PRIVATE LIMITED (IN LIQUIDATION), ATTACHED TO HIGH COURT OF KARNATAKA IV FLOOR, D AND F WING KENDRIYA SADAN, KERAMANGALA BANGALORE - 560034 Vs. SRI R.B. SHET S/O R.B. SHET NO. 43, 2ND CROSS, SRINIVASANAG

JUDGEMENT

(1.) THE Official Liquidator on behalf of the Company in liquidation has filed the instant application under Section 543(1) of the Companies Act. 1956 R/w Rule 260 of the Companies (Court) Rules, 1959. By the said application, misfeasance has been alleged against respondents who were erstwhile Directors of the Company in liquidation and as a consequence thereof, a sum of Rs. 2,21,59,085.25ps. has been claimed from the respondents with interest at 18% p.a. Respondent Nos. 2 and 3 though served are un -represented. The first respondent has appeared and filed the objection statement, disputing the liability on the first respondent for the said amount and the allegation of misfeasance has been denied on the ground that the first respondent was not a Director of the company as on the date of winding up.

(2.) IN view of the claim put forth in the application and the dispute raised by the first respondent, the matter had been set down for evidence. The witness on behalf of the applicant was examined as P.W. 1 and the documents at Exhs.P1 to P1 (c) were marked. The first respondent examined himself as RW1 and documents at Exhs.D1 to D9 were marked.

(3.) THE Company in liquidation was ordered to be wound up by order dated 03.10.2002. The statement of affairs was thereafter filed by respondent Nos. 2 and 3. Based on the balance sheet dated 31.03.2001, the applicant has raised the claim of Rs. 10,00,000/ - being payable as a share application money which was available with the company pending allotment of shares and the same had not been remitted to the Official Liquidator. Further, a sum of Rs. 43,27,345.56ps. is claimed as the value of the inventories indicated in the balance sheet, but not handed over to the Official Liquidator. A sum of Rs. l,68,31,739.69ps. was the amount due and payable by the sundry debtors, cash and bank balance, loans and advances for which respondent Nos. 2 and 3 had not accounted in the statement of affairs nor furnished details subsequently to the Official Liquidator. Hence, in all, a sum of Rs. 2,21,59,085.25ps. is claimed.