The company which is under liquidation is an unregistered company not have been registered under the Indian Companies Act and in respect of which a winding up order has been made. The company had its head office in Colombo, and a branch of which was in Mathurai, has now been wound up. Respondents 3 to 11 who are the directors of this company are all permanent residents of Ceylon and the applicants ask for an order that these respondents who were directors of the company may be directed to submit themselves for public examination under Section 195 of the Indian Companies Act and that they may be proceeded against for misfeasance under Section 235 of the Act. There is also a further prayer that the applicant claim for payment of the deposit amount may be treated as preferential claim.

The applicants entered into an agreement on 7th September, 1946, with the company and they were appointed distributor for the company's production for certain territory and a sum of Rs. 50, 000 was paid as deposit as follows : Rs. 15, 000 on 7th September, 1946, Rs. 10, 000 against delivery of copies of "Kumaraguru" and the balance of Rs. 25, 000 was to be paid or before 27th October, 1946. T