PRABHAKAR Vs. VIKRAM SUGAR MILLS LTD. ALOTE

JUDGEMENT

(1.) ONE of the creditors of the company namely Mrs. Raja Kakarlapudi Sudarsana Sundara Narasayamma submitted an application on 20 -12 -1954 under Section 235 of the Indian Companies Act, 1913, alleging certain acts of misfeasance, breach of trust and misapplication of the funds of the company by its Directors during the period of their management. This creditor after the submission of the application died on 21 -9 -1957. On 15 -1 -1962. her four daughters filed an application for their being brought on record as her legal reprsentatives and sought permission to continue the proceedings.

(2.) THE application was opposed by the Directors on the ground that the proceeding started on the petition of the creditor aforesaid had abated and since the period for setting aside the abatement had expired and no sufficient cause is made out for the delay, the application for their being brought on record was untenable.

(3.) SECTION 235 (3) of the Indian Companies Act, 1913 as it stood prior to amendment is as follows: