Allowed

Official Liquidator of the Mysore Kirloskar Ltd. v. M/S Swaraj Engines Limited

Karnataka HC15 Dec 2023CA/24/2007

Case brief

AI extract

What is this about?

The Court allowed the liquidator’s company application for a decree against the respondent for a debt of Rs. 9,79,823/- with interest. The claim was uncontroverted since the respondent failed to prove its defence of set-off. The Court granted the principal and adjusted interest rates.

What did the court decide?

Decree for Rs. 9,79,823/- with 18% interest till 31.3.2004 and 6% thereafter.

Official Liquidator of the Mysore Kirloskar Ltd. Vs… — Company and Corporate | Karnataka HC (2023)

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NC: 2023:KHC:45921 CA No. 24 of 2007 IN COP No.166 of 2001

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15^TH DAY OF DECEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE C.M. POONACHA

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COMPANY APPLICATION NO. 24 OF 2007

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COMPANY PETITION NO.166 OF 2001

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BETWEEN:

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OFFICIAL LIQUIDATOR OF THE MYSORE KIRLOSKAR LTD (IN LIQN.) ATTACHED TO HIGH COURT OF KARANTAKA, 'D' WING, 4TH FLOOR,KENDRIYA SADAN, KORAMANGALA, BANGALORE 34.

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…APPLICANT

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(BY SRI.JAGADEESH GOUD PATIL., 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 SWARAJ ENGINES LIMITED PLOT NO.2, INDUSTRIAL FOCAL POINT, PHASE IX, SAS NAGAR 160 062. DT. ROPAR.

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…RESPONDENT

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(BY SRI. P H RAMALINGAM., ADVOCATE)

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THIS COMPANY APPLICATION IS FILED UNDER SECTION 446(2) (B) OF THE COMPANIES ACT, 1956 AND RULE 9 OF THE COMPANIES(COURT) RULES, 1959, PRAYING TO GRANT A DECREE IN FAVOUR OF THE APPLICANT AGAINST THE RESPONDENT FOR A SUM OF RS.9,79,823/- WITH INTEREST AT 6% P.A. FROM IST APRIL, 2004 I.E., THE DATE OF WINDING UP ORDER TO TILL THE DATE OF THE JUDGEMENT AND FUTURE INTEREST AND ETC.

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

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2 - NC: 2023:KHC:45921 CA No. 24 of 2007 IN COP No.166 of 2001

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ORDER

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The present application is filed under Section 446(2)(b) of the Companies Act, 1956¹ and Rule 9 of the Companies (Court) Rules, 1959² .

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It is forthcoming from the record that the company³

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was ordered to be wound up by this Court vide order dated 1.4.2004 passed in Co.P.No.166/2001 and other connected matters. The first Co.P.No.77/2000 was presented before this Court in the month of March, 2000 and the Official Liquidator attached to this Court has been appointed as the liquidator of the company in liquidation by virtue of Section 449 of the Act.

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It is the case of the applicant that the respondent was having trade transactions with the company in liquidation and it was indebted in a sum of 5,59,899/- as on 31.1.2000. Interest has been claimed at 18% pa., from 31.1.2000 to 31.3.2004 in a sum of 4,19,924/-. Hence, a total claim of `9,79,823/- is made vide the present application.

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1 ‘the Act’ for short

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2 ‘the Rules’ for short

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3 ‘company in liquidation’ for short

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3 - NC: 2023:KHC:45921 CA No. 24 of 2007 IN COP No.166 of 2001

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The respondent has entered appearance through a counsel. Although no statement of objections has been filed, an affidavit in reply has been filed on behalf of the respondent, which is considered for the purpose of ascertaining the response of the respondent. In the said affidavit, it is denied that the respondent is liable to pay the amount claimed in the application. It is further stated that the group companies of the respondent have to recover various amounts from the company in liquidation. It is further placed on record that three group companies of the respondent were dealing with the company in liquidation and the respondent has given adjustment for the amounts due from the other two group companies to the company in liquidation and claimed the balance sum of `5,63,727.91.

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In support of its claim, the applicant has adduced the evidence of the Paid Assistant attached to the Office of the Official Liquidator who has been examined as PW.1. The averments made in the application are reiterated in the affidavit filed by way of examination-in-chief. A copy of the letter dated 23.11.2004 furnished by the ex-directors of the company in liquidation is marked as Ex.P1 and P4. The office

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4 - NC: 2023:KHC:45921 CA No. 24 of 2007 IN COP No.166 of 2001

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copy of the legal notice is marked as Ex.P2 and the reply given is marked as Ex.P3. The certified copy of the list of debtors is marked as Ex.P5 and the relevant entry pertaining to the respondent is marked as Ex.P5(a). The original ledger is marked as Ex.P6 and the relevant entry is marked as Ex.P6(a).

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It is forthcoming that the amounts claimed in the application are as per the amounts stated in Ex.P5(a). The amounts mentioned in Ex.P5(a) corresponds to the amounts mentioned in Ex.P6(a).

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The learned counsel for the respondent has sought for time to cross-examine PW.1. Thereafter, PW.1 was not cross-examined. The respondent has also not adduced any evidence.

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As noticed above, the claim made by the applicant in its application is based on the material on record. The respondent in its affidavit has admitted that it had transactions with the company in liquidation as also that the respondent owed monies to the company in liquidation. However, the respondent has contended that it has adjusted the amounts due from the respondent to the company in liquidation with regard to the other transactions of the applicant that it had

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5 - NC: 2023:KHC:45921 CA No. 24 of 2007 IN COP No.166 of 2001

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with the other group companies of the respondent. However, the basis of the said adjustment is neither averred nor proved in any manner.

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It is forthcoming that the evidence adduced by the applicant has remained uncontroverted and hence, the claim made by the applicant is liable to be granted.

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With regard to interest, it is forthcoming that the applicant has claimed the same at 18% pa., up to the date of winding up and thereafter at 6% pa., which is just and proper and liable to be granted.

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Hence, the following order is passed:

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ORDER

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i. The company application is allowed;

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ii. The respondent is directed to pay to the applicant a sum of `9,79,823/- together with interest at 18% pa., from 31.1.2000 to 31.3.2004 and at 6% pa., from 1.4.2004 till date of payment.

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ND List No.: 1 Sl No.: 42

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SD/JUDGE

Official Liquidator of the Mysore Kirloskar Ltd. v. M/S Swaraj Engines Limited

Case brief

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Official Liquidator of the Mysore Kirloskar Ltd. v. M/S Swaraj Engines Limited

Case brief

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