The Court dismissed a complaint under the Companies Act for non-prosecution and declared miscellaneous applications infructuous, due to respondents' alleged flight abroad and inability to secure their presence.
Complaint dismissed for non-prosecution with liberty to initiate fresh proceedings when respondents are found.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH.
CA No. 498-499 of 2012 and CP No. 60 of 2010. [O&M] Date of Decision: 03rd October, 2012.
M/s Prema Knit Fabrics [P] Limited Petitioner through Mr. Parveen Gupta, Advocate, for the Official Liquidator.
Versus
Shri Greesh Kumar & Anr. Respondents
CORAM:HON'BLE MR. JUSTICE SURYA KANT.
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?
SURYA KANT, J. [ORAL]
This complaint under Section 454[5-A] of the Companies Act, 1956 has been instituted by the Official Liquidator alleging nonsubmission of Statement of Affairs by the respondents who are exDirectors of the Company-in-Liquidation/M/s Prema Knit Fabrics [P] Limited. The above stated Company was ordered to be wound-up by this Court vide order dated 15.03.2007 passed in CP No. 212 of 2003 and the Official Liquidator attached to this Court was appointed as its Liquidator. The petition reveals that the Official Liquidator sent notices on 30.05.2007 to the respondents after taking possession of the office of the Company on 03.05.2007, calling upon them to file Statement of Affairs. The notices were received back with the report that the addressees were not residing at the given address.
The matter has been adjourned time and again as the Official Liquidator meanwhile made ernest efforts to trace out the correct address of the respondents. It does appear from the reports
sent by the postal authorities that the respondents have fled the country and gone abroad. The Official Liquidator, however, has not been able to lay his hands on the address of the respondents outside the country.
In these circumstances and in continuation of the order dated 09.08.2012, I am of the considered view that no useful purpose shall be served by keeping these proceedings pending unless the presence of the respondents is secured to punish them in accordance with law under Section 454[5-A] of the Act. The complaint is accordingly dismissed for non-prosecution with liberty to the Official Liquidator to initiate fresh proceedings on continuing cause of action as and when the respondents are traceable.
Disposed of.
CA No. 498-499 of 2012
In view of the above order passed in the main case, these misc. applications are rendered infructuous and are disposed of accordingly.
October 03, 2012. ( SURYA KANT ) dinesh JUDGE
3 issues framed by the court
Whether proceedings under Section 454[5-A] of the Companies Act should continue when respondents are unreachable abroad.
Whether dismissal for non-prosecution is appropriate without establishing respondent presence for punishment.
Whether the Official Liquidator should have fresh cause of action or rights remain while respondents are traceable.
1 provisions across 1 enactments
M/s Prema Knit Fabrics [P] Limited and Official Liquidator
Shri Greesh Kumar & Anr
Surya Kant
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
