Disposed

Official Liquidator of v. M/S Advanced Information and Management Studies (Aims) Pvt. Ltd.

Karnataka HC6 Dec 2023CA/20/2022

Case brief

AI extract

What is this about?

In a surprise application filed under Section 446(2)(B) of the Companies Act, 1956 by the Official Liquidator to recover dues, the High Court of Karnataka observed that the respondent had paid the principal amount via a demand draft. The court disposed of the proceedings as there was no need for further recovery of interest given the principal had been settled.

What did the court decide?

The company application is disposed of and the proceedings are closed following the payment of the principal amount by the respondent.

Official Liquidator of Vs M/S Advanced… — Insolvency and Bankruptcy | Karnataka HC (2023)

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1 - NC: 2023:KHC:44361 CA No. 20 of 2022 IN COP No.148 of 2015

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 6^TH DAY OF DECEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE C.M. POONACHA COMPANY APPLICATION NO.20 OF 2022

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COMPANY PETITION NO.148 OF 2015

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BETWEEN:

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OFFICIAL LIQUIDATOR OF, M/S. MAGNUM INTERGRAFIKS PRIVATE LIMITED, (IN LIQN), ATTACHED TO THE HIGH COURT OF KARNATAKA, "CORPORATE BHAWAN" NO. 26-27, 12TH FLOOR, RAHEJA TOWERS, M.G.ROAD, BENGALURU 560 001.

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…APPLICANT

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(BY SRI. SHRISHAIL NAVALAGUND., ADVOCATE)

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AND:

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Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA

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M/S. ADVANCED INFORMATION AND MANAGEMENT, STUDIES (AIMS) PVT LTD. BEHIND TRUCK TERMINUS, JP AVENUE, SAGARBHANGA (WEST BENGAL), DURGAPUR 713 211, PHONE NO. 9434032581, EMAIL [email protected], REPRESENTED BY ITS ADMINISTRATIVE OFFICER.

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…RESPONDENT

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(BY SMT. K.S.GIRIJAMMA., ADVOCATE)

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THIS COMPANY APPLICATION IS FILED UNDER SECTION 446(2) (B) OF THE COMPANIES ACT, 1956 READ WITH RULE 9 OF THE COMPANIES (COURT) RULES, 1959, PRAYING THAT THE RESPONDENT HEREIN BE ORDERED AND DECREED TO PAY TO THE APPLICANT A SUM OF RS.20,16,588/- WITH FUTURE INTEREST AT 18% PER ANNUM FROM 01.02.2022 TO TILL THE DATE OF PAYMENT AND ETC.,

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NC: 2023:KHC:44361 CA No. 20 of 2022 IN COP No.148 of 2015

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THIS APPLICATION COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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Learned counsel for the Applicant and learned counsel for the Respondent are present.

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The present petition is filed under Section 446 (2)(B) of Companies Act, 1956, R/w Rule 9 of the Companies (Court) Rules, 1959, for recovery of a total sum of ` 20,16,588/- together with interest from the Respondent.

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It is the case of the Applicant that the Respondent was indebted to the Company Liquidation in a sum of ` 9,83,219/-, which amount was forthcoming from the books maintained by the Company Liquidation as also from the statements of affairs and statement of account filed by the ExDirector of the company. It is forthcoming that the remaining amount is claimed by the Applicant is towards interest.

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The Respondent has entered appearance in present proceeding through a counsel. An affidavit of the respondent has been filed on 13.04.2022 and placing on record copies of vouchers and receipts endorsing acknowledgment of payments made to the Applicant Company.

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3 - NC: 2023:KHC:44361 CA No. 20 of 2022 IN COP No.148 of 2015

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Subsequently, the Respondent has filed a memo on 29.09.2023 seeking permission for settlement placing on record that the Respondent is willing to settle the matter by making payment of the principal sum of ` 9,83,219/- as full and final settlement and sought for consideration for the same. Pursuant

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to the said memo, the Respondent has also paid the said principal amount of ` 9,83,219/- to the Official Liquidator by way of demand draft, which has been placed on record by a memo dated 01.12.2023 and which has been recorded by this Court vide order dated 01.12.2023.

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It is the case of the Respondent that the entire amount due and payable by it to the company in liquidation had been paid in the year 2007 itself and transactions between the Respondent and company in liquidation are of the year 2006-07. In furtherance of the said submission, the learned counsel filed a memo placing on record a certificate issued by its Chartered Accountant. It is further submitted by the Respondent that only to avoid litigation and incurring of further cost, the Respondent has offered to pay the principal amount as full and final settlement.

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4 - NC: 2023:KHC:44361 CA No. 20 of 2022 IN COP No.148 of 2015

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In response, learned counsel for Applicant vehemently opposing the request made by the Respondent, has filed a reply on 01.12.2023 and 05.12.2023 opposing the settlement and submits that the actual amount due and payable to the company in liquidation is in excess of a sum of ` 20 lakhs.

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It is forthcoming from the aforementioned factual scenario that the original claim made by the applicant with respect to the amounts due and payable from the Respondent was a sum of ` 9,83,219/-. The basis of the same is the statement of affairs of the company in liquidation. However, the Respondent in its reply to claim made by the Official Liquidator has contended that the transaction of the Respondent and the company in liquidation was of the year 2006-07 and there have been no further transactions consequent to the same between the parties. Further, the Respondent has filed an affidavit along with various vouchers and receipts which indicate payments made to the company in liquidation. It is also forthcoming that an auditor certificate is also placed on record. In view of the aforementioned, the offer of settlement which is made, appears to be bonafide one.

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5 - NC: 2023:KHC:44361 CA No. 20 of 2022 IN COP No.148 of 2015

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It is also forthcoming that a major portion of the claim made by the Applicant is towards interest.

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Notwithstanding the claim made by the Applicant and the response of the Respondent, having regard to the fact that the Respondent has offered to pay the principal amount to avoid further litigation, also keeping in mind the receipts for payments having been made, which has been placed on record by this receipt. In view of the principal amount having been paid pursuant to the offer of settlement it is expedient, that the above proceeding be closed.

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In view of the above mentioned, the company application is disposed of.

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The present order closing the proceedings is made

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in peculiar facts and circumstances of present case.

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SD/JUDGE

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ASN

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List No.: 1 Sl No.: 9

Official Liquidator of v. M/S Advanced Information and Management Studies (Aims) Pvt. Ltd.

Case brief

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Official Liquidator of v. M/S Advanced Information and Management Studies (Aims) Pvt. Ltd.

Case brief

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