DINA NATH Vs. B.L. SHARMA AND ORS.

JUDGEMENT

(1.) M /s. Youngmen Benefit Chit Fund Company (P.) Ltd., which was incorporated in 1960 as a private limited company, went into voluntary winding up by resolution dated 27th April, 1973. Shri B. L. Sharma, respondent No. 1, and Shri O. P. Malhotra, respondent No. 4 were appointed as joint liquidators. On an application moved under s. 522 of the Companies Act, 1956, this company was ordered to be wounded up under the supervision of this court. The present proceeding before this court is a petition under s. 543 of the Companies Act, 1956, claiming that the respondents have misapplied the property of the company or committed misfeasance, breach of trust, etc., in the course of the voluntary winding up of the company. I may mention that, during the pendency of this petition, both the joint liquidators have been removed because of the fact that they were at loggerheads and unable to function jointly and have been substituted by the official liquidator. The present petitioner claims to be a creditor of the company to the extent of Rs. 4750 together with interest. If he is a creditor, he can move the petition. After the petition was filed, summons were served and points of claim and points of defense were filed. On the various questions raised, the following issues were framed :

(2.) DID the encashment of 5 cheques as alleged in para. 9(a) of the petition amount either to breach of trust or misfeasance by respondent No. 1 ?

(3.) WERE the acts mentioned in the last point done without the consent and connivance of respondent No. 1 and, if so, what is the effect ?