OFFICIAL LIQUIDATOR Vs. INDIRA KARTHA

JUDGEMENT

(1.) The Official Liquidator attached to the High Court of Kerala has filed this criminal complaint under sub-sections 5 and 5A of S.454 of the Companies Act, 1956, hereinafter called the Act, against the three accused persons, who were said to be the Directors and Manager respectively of Krishna Vilasom Industries Private Ltd. (in liquidation), hereinafter referred to as the Company. The Company was incorporated on 20-9-1943 with its registered office situated at Krishna Vilasom House, Manikath road at Ernakulam. On an application filed in Company Petition 1 of 1976 by Kamala Devi this Court by its order dated 7-4-1977 appointed the Official Liquidator attached to the High Court as the Official Liquidator of the Company. An order was passed on Application No. 794/1977 on 27-1-1978 by this Court directing the accused herein to file statements of affairs of the Company within four weeks from the date of that order. But inspite of this order the accused have failed to file statement of affairs of the Company as contemplated under S.454 of the Act. The default committed by the accused in this regard was without any reasonable excuse and they have thereby committed an offence punishable under sub-section (5) of S.454 of the Act. This in brief is the substance in the complaint.

(2.) The accused appeared before court and denied commission of any offence as alleged. They pleaded that there was no deliberate or wilful default on their part in submitting statements as contemplated under S.454 of the Act, that they were not in possession or custody of any of the documents or records relating to the company, that the documents at the material time were in the custody of the court and they bona fide believed that necessary steps will be taken by the Official Liquidator to get these documents and make them available to them for preparing statements. They also contended that they had acted honestly and reasonably and they had reasonable excuse for having not filed the statement within the time as directed.

(3.) In support of the prosecution case Pw. 1, an Upper Division Clerk in the Office of the Official Liquidator was examined and Exts. P1 to P10 were marked. On behalf of the accused the 1st accused as R. W. 1, the 2nd accused as R W. 2 and the 3rd accused R W. 3 were examined and Exts. D1 to D10 were marked.