Dismissed

M/S Kapoor & Kapoor Knit-Exports Pvt. Ltd. v. Vikas Kapoor & Ors.

Punjab & Haryana HC22 Aug 2012CP/28/2012

Case brief

AI extract

What is this about?

Criminal proceedings instituted under Section 454 of the Companies Act, 1956 for failure to submit Statement of Affairs by company directors were disposed of by imposing a consolidated fine of Rs. 50,000, payable within three months, upon which proceedings shall be dropped.

What did the court decide?

Consolidated fine of Rs. 50,000 imposed to be deposited within three months; proceedings dropped upon deposit.

M/S Kapoor & Kapoor Knit-Exports Pvt… — Insolvency and Bankruptcy | Punjab & Haryana HC (2012)

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IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH.

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CP No. 28 of 2012 [O&M]. Date of Decision: 22^nd August, 2012.

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Kapoor & Kapoor Knit Export Pvt. Ltd. Petitioner through

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Mr. D.P.Ojha, OL

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Versus

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Vikas Kapoor & Ors. Respondents through Mr. Alok Jain, Advocate.

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CORAM:HON'BLE MR. JUSTICE SURYA KANT.

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1. Whether Reporters of local papers may be allowed to see the judgment? 2. To be referred to the Reporters or not? 3. Whether the judgment should be reported in the Digest?

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SURYA KANT, J. [ORAL]

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This complaint under Section 454 [5] of the Companies Act, 1956 has been instituted by the Official Liquidator inter-alia , alleging that the respondents have failed to submit the Statement of Affairs despite ample opportunities. Hence, they are liable to penal consequences under the afore-stated provisions.

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[2]. M/s Kapoor & Kapoor Knit Export Private Limited was a Company incorporated under the Companies Act, 1956 and it was ordered to be wound-up by this Court vide order dated 17.02.2011 passed in Company Petition No. 37 of 2010. The Official Liquidator attached to this Court was appointed as its Liquidator with a direction to take charge of all the properties and assets of the Company forthwith.

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[3]. It is averred in the complaint that the officials were deputed by the Official Liquidator to take charge of the Registered Office situated at 7-A, Industrial Area Extension, Ludhiana on 24.03.2011 who reported that Plot No. 7-A stood divided in two parts

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and it was revealed that the said plot was owned by Darpan Jain and Arun Jain who had purchased the same in Public Auction through Indian Overseas Bank. One room and a store constructed on the other part of the said Plot, however, was in possession of the Company-in-Liquidation and its symbolic possession was taken over by the Official Liquidator on 01.04.2011.

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[4]. The Official Liquidator has further alleged that though the respondents-Directors of the Company were required to submit the Statements of Affairs duly verified with an affidavit as on the date of winding-up order, within a period of 21 days from the date of passing of the said order but no such Statement of Affairs were filed, hence several notices were issued by the Official Liquidator to the respondents to file Statement of Affairs but the same could not be served. Since the respondents did not file the Statement of Affairs despite service of notice, the Official Liquidator has initiated the present criminal proceedings.

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[5]. Learned counsel for the respondents states that Statements of Affairs complete in all respects have been filed, though after a delay of one year and two months for which he submits that a lump-sum penalty may be imposed.

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[6]. Taking into consideration totality of the circumstances, a consolidated fine of `50,000/- is imposed on the respondents, which they shall deposit within a period of three months in the Common Fund Pool Account maintained by the OL. On deposit of the said fine, the proceedings shall stand dropped.

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[7]. Disposed of. August 22, 2012. ( SURYA KANT ) dinesh JUDGE

M/S Kapoor & Kapoor Knit-Exports Pvt. Ltd. v. Vikas Kapoor & Ors.

Case brief

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M/S Kapoor & Kapoor Knit-Exports Pvt. Ltd. v. Vikas Kapoor & Ors.

Case brief

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What did the court decide?

What the court decided

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