PRABHAKAR PARASHURAMJI PANDIT Vs. VIKRAM SUGAR MILLS LTD

JUDGEMENT

(1.) ONE of the creditors of the Company namely Mrs. Raja Kakarlapudi Sudarsana sundara Nara-sayamma 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 representatives 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.) ON behalf of the legal representatives, Mr. Waghmare contended that the provisions of Limitation Act are inapplicable to the proceedings under Section 235 of the Act. The learned counsel referred to the change introduced in Section 235 by the Companies (Amendment) Act of 1936 whereby Sub-section (3) of Section 235 as it stood prior to the passing of the aforesaid Amendment Act had been repealed. It was argued that since the provision as to the applicability of the indian Limitation Act, 1903 to an application under Section 235 of the Companies act is repealed, we cannot apply even Article 176.