COFFEE BOARD Vs. PERFECT GUNNY STORES

JUDGEMENT

(1.) THIS is a petition filed by the applicant who is the 22nd respondent in the Company Petition to substitute him as petitioner in the Company Petition. The circumstances which compelled the 22nd respondent to file this petition are as follows: The applicant is the Coffee Board. The Ex-Managing Director of the Company under liquidation filed application for recording payments of amounts due to the creditors including secured creditors and prayed to this Court to hand over possession of Company's properties from the liquidator and to dismiss the Company Petition. The applicant has detailed the background of the filing of this Company Petition which, according to the applicant, throws a cloud on the bona fide of the Company. The Company Petition was filed on 29.3.1990. Without any stiff opposition from the Company a provisional liquidator was appointed on 4.4.1990. Coming to know of these developments the Coffee Board got themselves impleaded in the Company Petition so as to enable them to remove coffee kept in the godown of the Company. The removal of the Coffee was objected by the workers of the Company. Therefore an Advocate-Commissioner was appointed for supervising the curing operation. When the Advocate-Commissioner inspected the godown it was revealed that 17 tonnes of coffee kept in the godown of the Company worth Rs. 43,52,977.64 have been stolen. Thereafter the Coffee Board filed a claim statement showing the adjustment of the amounts due to the company from the Coffee Board and the balance amount due to the Coffee Board which, according to the applicant, comes to Rs.61,84,049.24. The real amount could be ascertained only after final settlement of the accounts.

(2.) THERE were several revival schemes put forward by several persons. This Court explored the viability of those schemes. But finally this Court could not approve any scheme for various reasons. In the meanwhile, the Official Liquidator and the Coffee Board filed petition for a direction to the C.B.I, to conduct an investigation regarding the pilferage of coffee in the godown of the Company. The C.B.I. investigated the crime and filed charge sheet before the Magistrate Court.

(3.) THIS court in another order dated 1.10.1996 appointed an auditor to assess the amount clue to the Coffee Board and also the amount said to be due from the Coffee Board. Shri. Balasubrahmanian. Chartered Accountant of M/s. Surya & Company, Calicut was appointed for audit and other purpose. This Court also directed the Chartered Accountant to assess the claims of the Coffee Board. This Court further ordered to consider the above report and the liability would be assessed. The Company was not agreeable to the above course and therefore, the Company took the matter in appeal which is still pending. It was submitted at the bar that the auditor has submitted a report before the Division Bench wherein the appeal is pending.