JAMSHEDPUR CEMENT LTD Vs. NAGIN B PARIKH

JUDGEMENT

(1.) THE Company Jamshedpur Cement Ltd. was wound up by this Court on 14th January, 2003. THE Official Liquidator attached to this Court is in possession of all its assets and other properties.

(2.) AS is routine in winding up proceedings, an order was made by this Court on 31st August, 2007 appointing a Chartered Accountant to investigate the affairs of this Company under Section 543 of the Companies Act, 1956 (hereafter "the Act"). The Court was in contemplation of starting misfeasance proceedings against the directors and other officers of the Company. It would be guided, in ordering initiation of those proceedings by the report of the auditor to be filed after investigation was complete.

(3.) FOUR respondent former directors of the Company have made separate applications to the Court to absolve them from all the charges of misappropriation and misapplication made against them by the Official Liquidator. They are the second respondent who has made the application C.A. 467/2008, the sixth respondent who has made the application C.A. 466/2008, the ninth respondent who has made the application C.A. 468/2008 and the tenth respondent who has made the application C.A. 645/2009. All these applications were in the nature of demurrer. At the time of consideration of those applications I felt that the points raised therein, by themselves, could not absolve the applicant directors of their liability. The four applications had to be decided on affidavits. After affidavits were complete these four applications were to be considered along with the misfeasance application. C.A. 645 of 20094