Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2003 Supreme(Raj) 1344

RAJASTHAN HIGH COURT AT JAIPUR BENCH
S.K.Keshote, J.
Gopal Krishna Sharma - Appellant
Versus
Shahibi General Finance and Investments Ltd. - Respondent
Company Petition Nos. 26 and 27 of 1996.
Decided On : 25-07-2003

For the Petitioner:Rajendra Soni, Advocate.
For the Respondent:Ravi Shankar Sharma and D.D. Khandelwal, Advocates.

An ex-director cannot use the provisions of the Companies Act, 1956, for winding up of the company for recovery of his dues.

Headnote:
Winding Up Petition - Ex-Director's Right to Winding Up - The court dismissed the winding up petition filed by the ex-director of the respondent company, holding that the ex-director cannot resort to the provisions of the Companies Act, 1956, for winding up of the company for recovery of his dues.
Fact of the Case:

The petitioner, an ex-director of the respondent company, filed a winding up petition for recovery of his dues.
Finding of the Court:

The court found that the petitioner, being an ex-director, cannot resort to the provisions of the Companies Act, 1956, for winding up of the company.
Issues: The issue was whether the ex-director had the right to file a winding up petition for recovery of his dues.
Ratio Decidendi: The court held that the ex-director cannot use the Companies Act, 1956, for winding up of the company for recovery of his dues and should resort to a suit for recovery instead.
Final Decision: The winding up petition filed by the ex-director was dismissed.

JUDGMENT

1. - Respondents Nos. 1 and 4 are not served.

2. This is a winding up petition filed by the petitioner for winding up of the respondent No. 1-company.

3. It is not in dispute that the petitioner is one of the ex-directors of the respondent-company. Learned counsel for respondents Nos. 2 and 3 have raised a preliminary objection that this petition is not maintainable as the petitioner is one of the ex-directors of the respondent-company and he cannot resort to the provisions of the Companies Act, 1956, for winding up of the respondent-company for recovery of his dues. He has remedy of the suit for recovery of the amount of Rs. 46,565 allegedly due against the respondent-company.

4. I am in agreement with the preliminary objection raised by learned counsel for respondents Nos. 2 and 3 that the petitioner being one of the ex-directors of the respondent-company, cannot resort to the provisions of the Companies Act, 1956.

5. In the result, this winding up petition fails and the same is dismissed.

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Judicial Analysis

2003 Supreme(Raj) 1344

RAJASTHAN HIGH COURT AT JAIPUR BENCHS.K.Keshote, J.Gopal Krishna Sharma - AppellantVersusShahibi General Finance and Investments Ltd. - RespondentCompany Petition Nos. 26 and 27 of 1996.Decided On : 25-07-2003

An ex-director cannot use the provisions of the Companies Act, 1956, for winding up of the company for recovery of his dues.

Judicial Analysis

RAJASTHAN HIGH COURT AT JAIPUR BENCH
S.K.Keshote, J.
Gopal Krishna Sharma - Appellant
Versus
Shahibi General Finance and Investments Ltd. - Respondent
Company Petition Nos. 26 and 27 of 1996.
Decided On : 25-07-2003