OFFICIAL LIQUIDATOR OF R C ABROL AND COMPANY PRIVATE LIMITED IN LIQUIDATION Vs. A R CHADHA AND COMPANY

JUDGEMENT

(1.) The only question involved in this case at this stage is, whether an application made by the Company in liquidation under section 446 (2) (b) of the Companies Act, 1956, against one of its former customers for recovery of price of goods sold to him before it was ordered to be wound up, is not governed by the Limitation Act:

(2.) These proceedings arose during the course of winding up of R. C. Abrol and Company Private Limited, which was ordered to be wound up by an order dated August 19, 1966 of the Circuit Bench of the Punjab High Court at Delhi, on a petition dated March 4, 1966, filed for this purpose. On August 18, 1971 the Official Liquidator filed a petition under clause (b) of sub-section (2) of section 446 and section 543 of the Companies Act, 1956 against A. R. Chadha and Company and four others, one of whom (respondent No. 2), was the Managing Director of the Company before its winding up and the other three (respondents Nos. 3 to 5), were said to have been working directly under his instruction and control. The claim of the Official Liquidator against respondent No. 1 was mentioned in paragraph 8 of the petition, in the following terms :

(3.) Respondent No. 1 in his reply stated that nothing was due from it. The correctness of the company's accounts was disputed. A preliminary objection was raised that the claim of the company in liquidation at any rate was barred by limitation. The petition against respondent No. 1 was said to be liable to be rejected under Order 7 Rule 11 of the Code of Civil Procedure on this score.