Allowed

Official Liquidator of M/S W S Telesystems Ltd. v. Ircon International Ltd.

Karnataka HC29 Nov 2023CA/259/2011

Case brief

AI extract

What is this about?

Application filed by Official Liquidator under Section 446(2)(b) Companies Act, 1956 for recovery of debt owed by Respondent to company in liquidation was allowed by the High Court of Karnataka after unchallenged evidence was adduced.

What did the court decide?

Rs. 4,37,231/- along with interest at 6% per annum from 08.03.2011 till date of payment.

Official Liquidator of M/S W S Telesystems Ltd. Vs… — Company and Corporate | Karnataka HC (2023)

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NC: 2023:KHC:43518 CA No. 259 of 2011 IN COP NO.95/1997 C/W COP NO.3/2006

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 29^TH DAY OF NOVEMBER, 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. 259 OF 2011

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COMPANY PETITION NO.95 OF 1997

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C/W

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COMPANY PETITION NO.3 OF 2006

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BETWEEN:

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OFFICIAL LIQUIDATOR OF M/S W S TELESYSTEMS LTD (IN LIQN) ATTACHED TO HIGH COURT OF KARANTAKA

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CORPORATE BHAVAN, NO.26-27,12TH FLOOR, RAHEJA TOWERS, M G ROAD, BANGALORE-560001

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…APPLICANT

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(BY SRI SHRISHAIL NAVALGUND, ADVOCATE FOR OL)

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Digitally signed by BHARATHI S Location: HIGH COURT OF KARNATAKA

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AND:

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IRCON INTERNATIONAL LTD PALIKA BHAVANA, SECTOR-13, R K PURAM NEW DELHI

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…RESPONDENT

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(BY SRI M SHIVAPRAKASH, ADVOCATE)

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THIS COMPANY APPLICATION IS FILED UNDER SECTION 446(2)(B) OF THE COMPANIES ACT,1956 R/W RULE 6 & 9 OF THE COMPANIES (COURT) RULES, 1959, PRAYING THE RESPONDENT HEREIN JOINTLY AND SEVERALLY BE ORDERED AND DECREED TO PAY TO THE APPLICANT A SUM OF RS.4,37,231.00 WITH INTEREST AT 6% PER ANNUM FROM 1.3.2011 TO TILL THE DATE OF THE JUDGEMENT AND FUTURE INTEREST AND ETC.,

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NC: 2023:KHC:43518 CA No. 259 of 2011 IN COP NO.95/1997 C/W COP NO.3/2006

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

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ORDER

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The present application is filed under Section 446(2)(b) of the Companies Act, 1956 (hereinafter referred to as ‘Act’) and Rule 9 of the Companies (Court) Rules, 1959 (hereinafter referred to as ‘Rules’) for recovery of a total sum of Rs.4,37,231/-.

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It is the case of the applicant/ official liquidator that M/s. W.S.Telesystems Ltd., (hereinafter referred to as ‘company in liquidation’) was provisionally ordered to be wound up by this Court vide order dated 16.1.2004 passed in Company Petition No.95/1997 and other connected matters. Subsequently, by order dated 06.07.2006, passed in the said company petitions, the provisional liquidator was ordered to be liquidator of the company by virtue of Section 449 of the Act.

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It is the case of the applicant that the respondent was having transaction with the company in liquidation and as per the statement of affairs filed by the Ex-Directors of the company in liquidation, the respondent was indebted to the

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- 3 - NC: 2023:KHC:43518 CA No. 259 of 2011 IN COP NO.95/1997 C/W COP NO.3/2006

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company in a sum of Rs.1,57,889/- as on 31.03.1998. That consequent to the order of winding up, the official liquidator issued a demand notice dated 04.08.2005 and a reply dated 13.09.2005 was received from the respondent. Thereafter, the

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present application is filed and the claim made by the application at para No.5 of the application is as follows:

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			Amount
As per r notice th reflected	ecords/letter at the last on 31.3.98	dated 2.9.04, it is date of transaction	`1,57,889.00
From	To	Rate of Interest
31.3.98	6.7.06	@18%Contractual Rate on `1,57,889.00	2,34,854.00
6.7.06	28.2.2011	@6% Rate on `1,57,889.00	43,988.00
Notice Ch	arges		500.00
Total			`4,37,231.00

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Notice of this application was served on the

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respondent and who entered appearance through a counsel and statement of objection was filed.

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4 - NC: 2023:KHC:43518 CA No. 259 of 2011 IN COP NO.95/1997 C/W COP NO.3/2006

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It is the case of the respondent that it has no records with it pertaining to transaction with the company in liquidation and that despite request made to the official liquidator to provide records, no such records have been furnished.

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Evidence has been adduced by the applicant and the assistant in the office of the Official Liquidator has been examined as PW.1. Exs.P1 to P5 have been marked in evidence. It is forthcoming that cross examination of PW1 has been taken as ‘Nil’ and the respondent has not adduced any evidence. Hence, the evidence adduced on behalf of the applicant has remained unchallenged.

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Ex.P1 is a true copy of the statement of Affairs which discloses Sundry Debtors as Rs.35,92,776/-. Ex.P2 is a true copy of the ledger extract of the company in liquidation for the period between 1.4.2003 to 16.1.2004 which discloses the opening balance as on 01.04.2003 with respect to Respondent is `1,57,889.40. Ex.P3 is a copy of the letter dated 02.09.2004 written by the Ex-Director of the company to the Official Liquidator which discloses at the chart mentioned in para No.3,

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5 - NC: 2023:KHC:43518 CA No. 259 of 2011 IN COP NO.95/1997 C/W COP NO.3/2006

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that the amount outstanding and payable from the respondent

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is Rs.1,57,889/-. The invoice number and date is also mentioned as No.8771 dated 31.03.1998. Ex.P4 is the notice dated 04.8.2005 issued by the Official Liquidator to the respondent and Ex.P5 is reply dated 13.09.2005.

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It is forthcoming that the applicant adduced evidence with respect to the claim made as per the records available with the company in liquidation. Although the respondent has filed its statement of objections asserting no documents are available with it, it has not cross examined the PW.1. Hence, the evidence adduced by the applicant has remained unchallenged and the claim made by the applicant has required to be granted.

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The applicant has also made a claim for interest for the period between 31.03.1998 to 06.07.2006 and claimed interest @ 18% on the outstanding amount for the period from 06.07.2006 to 28.02.2011 which amounts to Rs.2,34,854/- and 6% on the outstanding amount which amounts to Rs.43,988/-.

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NC: 2023:KHC:43518 CA No. 259 of 2011 IN COP NO.95/1997 C/W COP NO.3/2006

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Learned counsel for the applicant submits that

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interest @ 18% is sought, up to the date of filing of the present petition and thereafter interest at 6% is sought.

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In view of the aforementioned, the following order

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is passed:

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i) The application is allowed;

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ii) It is ordered that the company in liquidation is entitled to recover a sum of Rs.4,37,231/- together with interest @ 6% per annum from the date of filing of petition i.e., 08.03.2011 upto date of payment from the respondent.

Ordered accordingly.

Sd/JUDGE

List No.: 1 Sl No.: 49

Official Liquidator of M/S W S Telesystems Ltd. v. Ircon International Ltd.

Case brief

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Official Liquidator of M/S W S Telesystems Ltd. v. Ircon International Ltd.

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