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2012 Supreme(Raj) 2188

RAJASTHAN HIGH COURT AT JAIPUR BENCH
Ajay Rastogi, J.
Official Liquidator - Appellant
Versus
G.C. Bhandari and Ors. - Respondent
S.B. Company Application No. 29 of 1993.
Decided On : 11-10-2012

For the Applicant:Amod Kasliwal, Advocate.
For the Respondents:JK Singhi, Sr. Advocate with Ravinder Pal and Sandeep Taneja, Advocates.

Headnote:

(a) Companies Act, 1956 – S. 542 and 544 – the issue was whether proceedings can continue after the death of the director – following the judgment reported in 1983 (1) SCC 538 the court decided that the proceeding can continue against the legal representatives of the deceased director to the extent of the estate for which the director is liable/entitled.

       (b) Civil Procedure Code, 1908, Order 22 Rule 10 – A – the court held that the contract exists between the deceased party and his pleader to the extent that he shall inform the court of the death of the party and ascertain whether or not there is any legal heir to be impleaded in his place.

       (c) Civil Procedure Code, 1908, Order 22 Rule 4 – Companies Court Rules, 1959, Rule 9 – upon the death of a party it was informed to the court that he had left behind no son to be impleaded in the matter and consequently his name was struck out from the proceeding – later on the daughter of the deceased was impleaded and her objecting to the same on the ground that the name was struck out before is not maintainable.

       (d) Evidence Act, 1872 – S. 44 Civil Procedure Code, 1908 – S. 151 – the brother of the deceased concealed the fact that the deceased had no surviving legal heir knowingly and consequently the name of the deceased was struck out – the applicant then made an application to implead the daughter of the deceased – the court held that the previous order to strike out the name was obtained by playing fraud upon the court and is liable to be dismissed.

JUDGMENT

1. - Instant company application No. 548 dated 06/01/2012 has been filed by the Official Liquidator u/R.9 of the Companies Court Rules,1959 read with Section 151 CPC for recalling the order dated 05/12/2008 deleting the name of Sh.GC Bhandari, who was one of the promoter director of M/s B.T. Conductors Pvt. Ltd (Company in liquidation), died during pendency of the proceedings on 07/02/2007.

2. The brief facts that culled out from the averments made in the application indicates that the original Company Application No.29/1993 was filed u/Sec. 542 and 543(1) of the Companies Act, 1956 for repayment and restoration to the Company in liquidation impleading the directors of the Company as respondents and late GC Bhandari, being one of the promoter director of the Company, was impleaded as respondent No.1 in the original Company Application No.29/1993.

3. Notices of the company application No. 29/1993 were served upon late GC Bhandari, counsel appeared on his behalf and reply was filed and issues were framed and during pendency G.C. Bhandari died on 07/02/2007. This Court would like to note that Sh.TC Bhandari, who is real younger brother of late GC Bhandari, informed the Court by filing application on 17/04/2007 that GC Bhandari, promoter director of the Company died during pendency of the proceedings on 07/02/2007 and proceedings stood abated qua him. However, further application came to be filed by the counsel appearing for late GC Bhandari and categorical statement was made that wife of late GC Bhandari died and he has no son as legal representative as per his knowledge; and counsel confined to communicate regarding son, it appears that there was knowledge about daughter of the deceased but this fact was not disclosed to the Court and even from the order-sheets of the present proceedings of Company Application No.29/1993, time was granted by the Court to the counsel appearing for late GC Bhandari to inform the Court regarding legal representatives of the deceased but he too has shown his inability to trace out the names of the legal representatives. However, the ultimate fact remains that since the name of the legal representative of the deceased promoter director late GC Bhandari could not be traced out, an application came to be filed from the office of the Official Liquidator seeking permission of this Court to delete the name of respondent No.1-late GC Bhandari.

4. This Court also took endeavor to find out the legal representative of late GC Bhandari but since either of the party could not provide any assistance to find out name of his legal representative, finally the name of the respondent NO.1 late GC Bhandari was deleted from the array of respondents vide order dated 05/12/2008. However, at a later stage, another application came to be file from the office of the Official Liquidator under Order 22, Rule 4 CPC for taking legal representatives of late GC Bhandari on record and since the counsel appearing for other respondents had no objection about the same, that application was allowed on 29/07/2010 and the legal representative of late GC Bhandati was taken on record. However, the matter was not put to rest and immediately after the legal representative was served, written objections came to be filed that once the respondent-director late GC Bhandari stood deleted from the array of respondents vide order dated 05/12/2008 and this fact was not brought to the notice of the Court while application under Order 22, Rule 44 CPC was considered and his legal representative was taken on record and this Court also finds substance in the submission made by legal representative who was taken on record pursuant to order dated 29/07/2010 and after hearing the parties, the order passed by the Court on the application under Order 22, Rule 4 CPC dated 29/07/2010 came to be recalled vide later order dated 04/08/2011 and the matter has now come up on the application filed by the Official Liquidator u/R.9 of the Companies Court Rules,1


















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