REGISTRAR OF COMPANIES Vs. MOTOR FIN PVT LTD

JUDGEMENT

(1.) This is an appeal from the judgment of our learned brother, K. V. L. Narasimham, J. (as he then was) given in Company Application No. 53 of 1969 on 21st April, 1969.

(2.) The facts, in out-line, are that Motor Fin. Ltd. went into members' voluntary liquidation on 1st October, 1967. As is required under section 488 of the Companies Act a declaration of solvency was made by the Directors. T eir opinion was that the company in liquidation will be able to pay its debts in full within the period stipulated in the declaration. The members appointed one M.K.K. Chandrasekharam as the liquidator.

(3.) The liquidator, on 1st March, 1968, called upon the creditors to prove their debts and on 4th April, 1968 he admitted various claims and paid quite a few of them. Only two creditors remained unpaid. They seem to have appeared before the High C urt and asked for condonation of delay in setting up their claims. One of the two, who is the major creditor, was one Gona Venkata Mutyam Rao. He died in 1965 long before the company had gone into liquidation.