OFFICIAL LIQUIDATOR, HIGH COURT Vs. V. SELVARAJ

JUDGEMENT

(1.) THIS application is taken out by the official liquidator to make the respondents who are the ex -directors of the company under liquidation liable for misfeasance under Sections 542 and 543(1) of the Companies Act, 1956, and also to hold that they are liable jointly and severally to pay compensation of Rs. 27,85,940 being the loss caused to the company and also the future claims from the creditors with interest at the rate of 12 per cent, per annum from the date of winding up, viz., September 15, 2000; and to declare that the respondents are personally liable and that the above liability shall constitute the first charge on the properties and effects in possession of the respondents.

(2.) BY an order dated September 15, 2000, passed in C.P. No. 138 of 1998, the official liquidator was appointed as the provisional liquidator for M/s. South Point Enterprises P. Ltd., which, is a company under liquidation. The said company was incorporated in the year 1994 having its registered office originally at Anna Nagar East, Chennai and subsequently at flat No. A -l, Ashok Aiswaralayam, 13, Habibullah Road, T. Nagar, Chennai -17, with the share capital of Rs. 60,000. The object of the company was to carry on the business to import, export, buy, sell, etc., the goods, products, articles, merchandise and machinery and to carry on business and to act as merchants, commission agents, etc., in India or in any part of the world. On the date of liquidation, the respondents remained as directors of the company.

(3.) IN respect of loans and advances category, it was stated that a sum of Rs. 6,99,902 was due to the company from some debtors and the said transactions pertained to the years 1995 -96 and 1996 -97 and the ex -directors have not taken any reasonable steps to recover the said amount and the debt notices issued were returned for want of correct address.