ENNEN CASTINGS P LTD Vs. M M SUNDARESH

JUDGEMENT

(1.) C. A. No. 423/1998 is filed under Section 543 (1) of the Companies Act, 1956 for a direction to the respondents who are all the Directors of the Company under liquidation to pay the Company a sum of Rs. 6,88,311. 80 along with interest.

(2.) THE respondents have filed their statement of objections denying the liability. Thereafter the matter was referred to the Commissioner to record the evidence. Accordingly, the Commissioner recorded the evidence of the Official Liquidator and thereafter the case was set down for the evidence of the respondents. Sri. M. M. Sundaresh, the first respondent in C. A. No. 423/1998 was examined on 21-1-2003. Respondents 7 and 6 requested the Commissioner to permit them to cross-examine the said M. M. Sundaresh and also requested for cross-examination of respondents 4 and 5 in the event of they being examined. The said request of the respondents 7 and 6 was opposed by respondents 1, 4, and 5 contending that a co-respondent has no right to cross-examine the other respondent. Under those circumstances, the Commissioner called upon the respondents 7 and 6 to approach this Court and get the necessary permission to cross-examine. Accordingly, respondents 7 and 6 have filed an application in C. A. No. 110/2003 seeking permission to cross-examine RW1 and other respondents if they are examined in C. A. No. 423/1998.

(3.) IN the application it is contended by the applicants that soon after their retirement as Directors of the Company, the Company was taken over by respondents 1, 4 and 5 who are all the members of the same family and after taking over the Company, they have manipulated the accounts of the Company to the detriment of respondents 7 and 6. Therefore, it was contended that the interest of respondents 7 and 6 is in direct conflict with respondents 1, 4 and 5 in these proceedings, as they have made false allegations which would affect the interest of respondents 7 and 6. In the enquiry they should have the liberty to cross-examine the respondents 1, 4 and 5 to expose the falsity of the statement and to place the truth before the Court.