Money recovery suit against a company placed in liquidation by NCLT Chennai, with a liquidator appointed. The court held nothing survived for adjudication and the plaintiff's remedy was to claim against company funds before the NCLT; suit dismissed as infructuous.
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C.S.No.235 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 01.02.2024
CORAM
THE HON'BLE MR. JUSTICE ABDUL QUDDHOSE
C.S.No.235 of 2019
M/s.Mangalam Export Corporation, Rep. by its Partner, M.Swaminathan, No.61, Bakthapuri Street, Kumbakonam, Thanjavur District.
... Plaintiff
Vs.
1.M/s.Connexions Retail Stores Pvt. Ltd., No.120, Natesan Nagar, 3rd Main Road, Virugambakkam, Chennai - 600 092. Rep. by its Director.
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PRAYER: Plaint filed under Order VII Rule 1 of C.P.C. read with Section 7 of the Commercial Courts Act read with Order IV Rule 1 of Original Side Rules to direct the defendants to pay the plaintiff a sum of Rs.1,28,64,602.00 together with interest @ 18% per annum from the date of the plaint till full payment and to pay the plaintiff the cost of the suit.
For Plaintiff : Ms.Al. Ganthi Mathi
JUDGMENT
It is brought to the notice of this Court by both the learned counsel for
the plaintiff as well as the learned counsel representing the liquidator for M/s. Connexions Retail Stores Private Limited that by order dated 30.12.2019, passed by the National Company Law Tribunal (NCLT), Chennai, M/s. Connection Retail Stores Private Limited has gone under liquidation and a liquidator viz., the third defendant has been appointed. Since a liquidator has been appointed for M/s. Connexions Retail Stores Private Limited, against whom a suit has been filed by the plaintiff, nothing survives for further adjudication in this suit and the suit has now become infructuous. If at all the plaintiff seeks for recovery of money as claimed in the suit, their only remedy is to proceed against the funds belonging to the
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Company under liquidation viz., M/s. Connexions Retail Stores Private Limited by filing appropriate application before the NCLT, Chennai.
2. The learned counsel for the plaintiff has also not raised any serious
objection for the above observations made by this Court. After recording the
rival submissions and in view of the fact that M/s. Connexions Retail Stores Private Limited has now gone under liquidation, this Suit is dismissed as infructuous. No Costs.
01.02.2024
Index : Yes/No Speaking Order : Yes / No Neutral Citation Case: Yes / No ab
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C.S.No.235 of 2019
ABDUL QUDDHOSE. J.,
ab
C.S.No.235 of 2019
01.02.2024
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1 issue framed by the court
Whether the money recovery suit survives against a company that has gone into liquidation before the NCLT?
2 provisions across 2 enactments
M/s.Connexions Retail Stores Pvt. Ltd.
Mr.V.Swaminathan
Mr.Madhu Desikan
Abdul Quddhose
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
