MEHRUNNISA Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) This application under Order XIV Rule 9,11(b) & 19 of the Company Court Rules 1959 has been filed to direct the Official Liquidator to transfer the sum deposited by late Usman Sheriff, in W.P.No.1560, 2074 and 2075 of 2000 and kept apart in the "Crystal Loan Refund" to Crystal Investments.

(2.) It is pleaded case of the applicant that Crystal Investments is a partnership firm which was engaged in financing the projects. The husband of the applicant availed loan from the firm against security by way of mortgage. The partners of M/s.Crystal Investments were the erstwhile directors of M/s.Thiru-vi-ka Nagar Benefit Fund Ltd., but subsequently, resigned from their position as Directors. M/s.Thiru-vi-ka Benefit Fund Ltd. defaulted in repayment of deposits which resulted in filing of criminal case with DSP, Economic Offenecs Wing II in Cr.No.3 of 2000.

(3.) The partners of M/s.Crystal Investments were also accused in the charge sheet filed in C.C.No.4289 of 2002 pending in the Court of the Chief Metropolitan Magistrate, Egmore, Chennai. It was reported by the Investigation Officer that the partners of M/s.Crystal Investments had siphoned of money deposited by public, during their tenure as directors of the Company which was utilized by M/s.Crystal Investments to advance loan to the public against security.