NATIONAL SUGAR MILLS LTD Vs. STATE

JUDGEMENT

(1.) This is an application by the official liquidator under Section 543 of the Companies Act, 1956, against various directors who have been made respondents in this application. Of course some of the directors are Government directors and Government officials but none of the directors, though duly served, is appearing before me to contest or oppose these proceedings except one director, Mr. Ranadeb Choudhuri, Barrister-at-Law, who is being defended by Mr. Bikash Sen, advocate.

(2.) Mr. Ashutosh Law, counsel appearing for the official liquidator, submitted that his main attack in this misfeasance application is against the respondent No. 4, Manindra Nath Mitra, residing at 6-B, Keyatala Road, Calcutta, who was the managing director during the relevant time and was practically in sole charge of the management and affairs of this company and was all in all. According to Mr. Law, Mr. Choudhuri and also other directors are not directly responsible for the alleged act of misfeasance or breach of trust. However, on the points of claim and defence filed by R. Chowdhury the following issues were raised : 1. Whether the respondent No. 3, Ranadeb Choudhuri, barrister-at-law, is liable as a director for the sum of Rs. 83,700 or any part thereof to the company ? 2. Are the directors or any of them liable for the said sum of Rs. 83,700 or any part thereof to the company ? 3. Whether this application is barred by the law of limitation ? and 4. To what relief, if any, is the official liquidator entitled ?

(3.) I should first decide issue No. 3, i.e., whether this application is barred by the law of limitation. Mr. Bikash Sen, appearing for the respondent No. 3, says that the order for winding up of this company, National Sugar Mills Ltd., was made by this hon'ble court on 1st February, 1966, and this application for misfeasance was noted as made on 2nd February, 1971. Under Section 543(2) it says : ' An application under Sub-section (1) shall be made within 5 years from the date of the order for winding up......"