Allowed

Official Liquidator of the Mysore Kirloskar Ltd. v. M/S East West International Marketing

Karnataka HC13 Dec 2023CA/522/2008

Case brief

AI extract

What is this about?

The High Court of Karnataka allowed a company application filed by the Official Liquidator of Mysore Kirloskar Ltd under Section 446(2)(B). The Court directed the respondent to pay a specific sum of Rs. 9,25,894 along with interest at 6% per annum starting from June 1, 2008, as the claim was unchallenged and adequately proved.

What did the court decide?

Respondent directed to pay applicant Rs. 9,25,894 with interest at 6% p.a. from 01.06.2008 till date of payment.

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

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13^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.522 OF 2008

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COMPANY PETITION NO.166 OF 2001

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BETWEEN

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OFFICIAL LIQUIDATOR OF

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THE MYSORE KIRLOSKAR LTD (IN LIQN), ATTACHED TO HIGH COURT OF KARNATAKA D WING, 4TH FLOOR, KENDRIYA SADAN KORAMANGALA, BANGALORE-34

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…APPLICANT

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(BY SRI K S MAHADEVAN, ADVOCATE FOR OL)

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AND

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M/S EAST WEST INTERNATIONAL MARKETING 398, 100 FEET ROAD, TATABAD, COIMBATORE 641 012

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…RESPONDENT (SERVICE OF NOTICE TO RESPONDENT IS HELD SUFFICIENT V/O DTD 19.7.2023)

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THIS COMPANY APPLICATION IS FILED U/S. 446(2)(B) OF THE COMPANIES ACT, 1956 R/W RULE 6 & 9 OF COMPANIES(COURT) RULES, 1959, PRAYING THAT THE RESPONDENTS HEREIN BE ORDERED AND DECREED TO PAY TO THE APPLICANT A SUM OF RS.9,26,060.00 WITH INTEREST AT 6% PER ANNUM FROM 1.6.2008 TO TILL THE DATE OF THE JUDGEMENT AND FUTURE INTEREST AND ETC.

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THIS APPLICATION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 17.11.2023 COMING ON FOR 'PRONOUNCEMENT OF ORDER' 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

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the Companies Act, 1956 (hereinafter referred to as the ‘Act’) Rule 6 & 9 of the Companies (Court) Rules, 1959 (hereinafter referred to as ‘Rules’) for recovery of a total sum of Rs.9,26,060/-.

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The relevant facts necessary for consideration in the present petition are that the applicant – company (hereinafter referred to as company in liquidation) was ordered to be wound up by this Court vide order dated 01.04.2004 passed in Company Petition No.166/2001 and other connected matters and the Official Liquidator attached to this Court was appointed as the Liquidator of the company. The winding up petition in which the order of winding up was passed was presented before this Court on 14.03.2000.

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It is the case of the applicant that the Respondent was having trade dealings with the applicant company prior to its liquidation and as per the records maintained by the company and the details handed over by the Ex-Director, the respondent was indebted to the Harihara Division of the company in liquidation in

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in a sum of 3,84,881/- as on 31.10.2000 and the Hubli Division in a sum of 6,12,817/- as on 18.05.2000. That the Official Liquidator issued notice to the Respondent which was replied to by the Respondent by stating that the company in liquidation has to pay to the Respondent a sum of 1,27,000/-. That the total amount due and payable is 9,97,698/(3,84,881/+ 6,12,817/-). An advance of 5,22,027/- was required to be deducted and the balance amount of 4,75,671 was payable which has been claimed together with interest @ 18% from 31.03.2000 to 31.3.2004 and at 6% from 1.4.2004 till 31.5.2008.

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The notice issued to the Respondent was served and was held sufficient.

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The Assistant in the office of the official liquidator has been examined as PW.1. The Debtor’s list from the Statement of affairs was marked as Ex.P1. The ledger extract pertaining to respondent was marked as Ex.P2. The ledger extract pertaining to Hubli Division was marked as Ex.P3. The office copy of the notice was marked as Exs.P4 and P5 and the replies of the Respondent No.3 was marked as Exs.P6 and P7. Ex.P8 is a letter dated 21.2.2008 written by the Ex-Director of the company in liquidation to the official liquidator.

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It is forthcoming from Ex.P1 that the amounts in

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respect of the Harihar Division and Hubli Division have been mentioned. It is forthcoming from Ex.P2 that with respect to Harihar Division, the details of the invoices have been mentioned in respect of various amounts due from the Respondent. The sum of 3,84,881.05 which is indicated in Ex.P1 is also forthcoming as the total amount in Ex.P2. It is noticed that Ex.P3 is in respect of the amounts due pertaining to the Hubli Division. The details of the invoices have been mentioned vis-à-vis the transaction of the company in liquidation with the respondent. The total sum in Ex.P3 is also reflected in Ex.P1. Exs.P4 and P5 are the notices issued with respect to dues from the Harihar and Hubli Divisions respectively. In the replies dated 22.08.2005 and 06.02.2005 (Exs.P6 and P7) are the replies to the notices issued by the official liquidator. In both the said replies the respondent has stated that the company in liquidation is due to the Respondent in a sum of 1,27,000/-. No further details are forthcoming from the said replies. Ex.P8 is a letter dated 21.02.2008 written by the ExDirector of the company in liquidation in reply to the comments sought for from the official liquidator. It is forthcoming from the attachment of the said letter that the Respondent had given

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advances of a cumulative sum of `5,52,027/-, and the balance

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due and payable from the respondent is `4,75,671/-.

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It is clear from the aforementioned that the applicant

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had adequately proved the amount was due and payable from the Respondent as sought for in the application.

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Interest at 18% is claimed in respect of the amounts

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due for the period prior to the date of winding up order and subsequently, the interest is claimed at 6%.

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Learned counsel for the applicant in support of the claim of interest at 18% has relied on a judgment of a CoOrdinate Bench of Delhi High Court in the case of Bhandari Foils

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and Tubes Vs. Mawana Sugars Limited¹ , wherein in respect

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of a commercial transaction, interest has been awarded as 18%.

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In view of the aforementioned, the claim made by the

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applicant having remained unchallenged, the same is required to be granted.

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Hence, the following order is passed:

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i. The application is allowed.

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ii. The Respondent is directed to pay the applicant a sum of `9,25,894/-

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1 O.M.P. 321/2005 on 05.04.2019

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with interest at 6% p.a. from 01.06.2008 till date of payment.

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Sd/JUDGE

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Official Liquidator of the Mysore Kirloskar Ltd. v. M/S East West International Marketing

Case brief

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What did the court decide?

Official Liquidator of the Mysore Kirloskar Ltd. v. M/S East West International Marketing

Case brief

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