M/S Mangla Cotex Ltd. v. Sudhir Kumar Jain and Ors.
Case brief
What is this about?
Proceedings against former MD/Directors for non-filing of Statement of Affairs were abated after belated compliance. Lumpsum fine of Rs. 1 lac was imposed on defaulting Directors; nominee Directors were discharged. Official Liquidator may revive proceedings if fine is not paid.
What did the court decide?
Lumpsum fine of Rs. 1 lac to be deposited by respondents No.1–3 proportionately within one month; on payment, proceedings dropped. Respondents No.4–9 discharged.
What the court decided
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CP No.149 of 2005 (O&M) Date of Decision: 29.05.2013
M/s Mangla Cotex Ltd.
VS.
Sudhir Kumar Jain & Ors. . . . . Respondents
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Present: Mr. DP Ojha, Official Liquidator
Mr. Puneet Kansal, Advocate for respondents No.1 to 3 Mr. BS Walia, Advocate for respondents No.4,5,8&9 Mr. OP Sharda, Advocate for respondent No.6 None for respondent No.7
Issues for consideration
3 issues framed by the court
Whether to abate proceedings for non-filing of Statement of Affairs after five years of delay.
Whether nominee Directors should be charged for the default of actual Directors.
What penalty and procedure to adopt given the belated compliance by the respondents.
Parties & counsel
- petitioner
M/s Mangla Cotex Ltd.
- respondent
Sudhir Kumar Jain & Ors.
Coram
Dasti
Case details
As recorded by the court registry
- Court
- Punjab & Haryana HC
- Decided on
- · May
- Registered
- Case no.
- CP/149/2005
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