R RAVINDRAN Vs. KAPPAVAAR TEXTILES LTD

JUDGEMENT

(1.) Under consideration is CP 80/2016 that has been filed on 04.03.2016 under Sections 433(i)(f) read with Section 439(1)(b) of the Companies Act 1956 before Honble High Court of Madras by Mr. R. Ravindran against M/s. Kappavaar Textiles Ltd., inter alia praying therein that the Respondent Company failed to disclose the Balance Sheets to the RoC for five (5)consecutive

(2.) Notice was issued to Respondent Company. The Respondent Company caused appearance in the matter and submitted that the Respondent Company has been "struck off from the Register of Companies maintained by Registrar of Companies. Then, notice was issued to the Registrar of Companies for filing report. The Registrar of Companies submitted his report stating therein that the liability of the Directors and members of the Respondent Company still continues even if the name of the Company is "struck off from the Register of Companies, as has been provided under Section 248 (7) of the Companies Act, 2013.

(3.) Counter Affidavit has been filed on behalf of Respondent Company through its Managing Director wherein it has been stated that the Respondent Company had let out its movables to one M/s. Srivari Spun Yarn from the year 2009 and the said tenant has failed to pay the rent. Since the only property belonging to the Respondent has been leased out and the lessee has failed to pay the rent, the Respondent Company is not in a position to carry on any business or derive any income, so as to file any Balance Sheets and the Petitioner is also aware that the Respondent Company did not turn out to be a profitable venture. It has been denied that the Managing Director of the Respondent Company has been running the Company to make illegal means and putting the Petitioner to grave risk. It has also been averred under para 15 of the Counter Affidavit that even now, it is open to the Petitioner to approach the Managing Director of this Respondent Company in order to be wound up the Company through private negotiations.