NORTHLAND SUGAR COMPLEX LTD. Vs. SANSAR CHAND MAINI

JUDGEMENT

(1.) (I) Scope:

(2.) IN the above bunch of cases, the issue is the extent of power of the company court to give directions to the official liquidator in matters where there is a perceived deliberate non -compliance of the duty to provide the statement of affairs of the company -in -liquidation. The actions are invariably thwarted by taking objections that the directors to whom notices had been sent are not any longer in the management of the affairs of the company and that they are not liable for being prosecuted for alleged non -compliance of the duty to furnish the statement of affairs. The objections come through : (i) persons claiming to be ex -directors ; (ii) persons who claim to have retired from the office of director of the company more than one year prior to the "relevant date" ; (iii) persons whose names do not find a place in Form No. 32 ; and (iv) nominee directors of financial institutions, who are not acquainted with the day -to -day activities of the company and who enjoy certain immunities under specific enactments.

(3.) THE point to be resolved is not so much a matter of an academic exercise but an attempt to lay down specific guidelines for the official liquidator to follow before resorting to action under Section 454(5) and (5A) of the Companies Act, 1956. It is made clear that the specific details contained in each and every one of the cases which are pending are not addressed in this order but in terms of the guidelines passed hereunder, the actions will follow.