Praveen Chand Nahar v. Gemini Industries and Images Ltd.
Case brief
What is this about?
Leave under Section 446 of the Companies Act, 1956 to proceed with a suit instituted before winding up; leave granted by single judge (Senthilkumar Ramamoorthy J.), Madras High Court, order dated 07.02.2025 in Comp.A.No.352 of 2024 in C.P.No.178 of 2015. Underlying suit: C.S.No.472 of 2004 filed by late H.Gouthamchand Nahar (father of applicants Praveen Chand Nahar and another) against Ramraj Kalamandir and Gemini Industries and Images Ltd, the company in liquidation, for recovery of Rs.75 lakhs; transferred and re-numbered as O.S.No.2442 of 2021, XIX Additional City Civil Court, Chennai. Winding-up order dated 29.01.2016 post-dated the suit. Official Liquidator reported insufficient funds even for engaging counsel; permitted to defend the suit using common pool account funds. Deputy Official Liquidator: B.Ambili. Advocate for applicants: N.Sivaprakash.
What did the court decide?
Leave granted under Section 446 of the Companies Act, 1956 to proceed with O.S.No.2442 of 2021 before the XIX Additional City Civil Court, Chennai; Official Liquidator permitted to use common pool account funds to defend the suit.