accounts, books and records, the vehicles with the depreciated value of Rs.6,60,464 as on 31/03/1998 must have been sold and the amount has been misappropriated for personal benefits and to the disadvantage of the Company. The goods worth Rs.33,33,240/- towards cost of remaining items in the list have not been handed over to the OL and thus, the Directors would be jointly and severally liable for the same. The loans and advances to individuals which have become non-recoverable to the tune of Rs.2,31,84,940/- have become non-recoverable as no addresses of the said persons have been mentioned nor made available to the OL. The Directors did not hand over the loan documents nor filed recovery suits against the said persons who were mostly individuals without any security and inference has to be drawn that deposits taken from thousands of poor public persons have been advanced to the parties without any security and guarantee. The amount has become time barred and thus, the Directors did not discharge their duties and there is willful negligence on their part and are liable to compensate the Company in liquidation and the amount of Rs.1,58,17,141/-, which is aggregate of the loans and advances amount (Item no.4) was allowed to be released without any security and guarantee and has become time barred. Non-filing of the recovery suits against the debtors and guarantors within limitation period would amount to misfeasance and willful negligence towards the Company.
