OFFICIAL LIQUIDATOR Vs. T. SUDARSAN

JUDGEMENT

(1.) COMPANY Application Nos. 888 of 1995 is by the official liquidator appointed by this court as liquidator of Messrs. Dhanalakshmi Funds (India) Ltd., praying for certain directions. Company Application No. 1321 of 1995 is by B. Rajagopal and B. Muralidhar, ex -directors of the company in liquidation seeking for an order to discharge them from the proceedings under Sections 542 and 543 of the Companies Act, 1956, initiated by the official liquidator in Company Application No. 888 of 1995 in Company Petition No. 88 of 1989.

(2.) THE case of the official liquidator as set out in his report dated November 14, 1995, is briefly stated hereunder.

(3.) IT is stated by the official liquidator that in the course of liquidation proceedings, the business of the company in liquidation has been carried on with intent to defraud the creditors of the company in liquidation or any other persons or for fraudulent purposes and that it appears that the respondents have misapplied or retained or became liable or accountable for the money or property of the company in liquidation and have been guilty of misfeasance or breach of trust in relation to the company in liquidation. Therefore, the official liquidator has filed an application in C. A. No. 2224 of 1993 for permission to appoint an auditor to investigate the affairs and accounts of the company in liquidation and by order dated November 26, 1993, this court has appointed N. T. Arasu and Company, chartered accountants, to carry out the investigation of the affairs and accounts of the company in liquidation. The auditors have submitted their reports to the official liquidator and based upon those reports of the auditors as well as the available books and records of the company in liquidation, the official liquidator submitted the report for appropriate orders under Sections 542 and 543 of the Companies Act, 1956.