JUDGMENT

Sanjeev Prakash Sharma, J —Instant company application has been preferred by the Official Liquidator (herein after referred as 'OL') under Section 543 of the Companies Act, 1956 (hereinafter referred as the 'Act of 1956') wherein he has alleged that the respondents-Directors of M/s Surya Power Ltd. (hereinafter referred as 'Company in liquidation') have committed misfeasance within meaning of Section 543 of the Act of 1956 and has prayed that the respondents be compelled to restore such money and properties of the Company in liquidation as this Court may deem fit and proper and also direct them to compensate for the act of misfeasance.

2. Brief facts of the case are that the Company in liquidation was referred to by BIFR in terms of Section 20 of the then SICA Act on 29/01/1993 and was declared sick. On 04/08/1995, on the recommendation of the BIFR, the Company in liquidation was directed to be wound up in Company Petition No.7/1993. On 30/06/1997, statement of affairs were filed by the respondent No.1-S.K. Bhargava. The possession of the factory and unit could not be taken by the OL as the same had already been taken over by the RIICO under Section 29 of the SFC Act on 17/