1. On 8th July, 1956, the official liquidator of the Peoples Insurance Company Limited, in liquidation, filed a petition under Section 185 of the Indian Companies Act, 1913 , against S. Sardul Singh Caveeshar praying that the respondent may be ordered to pay Rs. 5,73,100 to the petitioners. The Company had been ordered to be compulsorily would up by the District Judge, Delhi, on 29th April, 1955. The respondent was the managing-director of the company. In this petition the official liquidator maintained that several amounts totaling Rs. 5,73,100/- belonging to the company were being wrongfully held by the respondent which, it was prayed, the respondent should be ordered to repay. The respondent denied that he was in possession of any moneys or property belonging to the company.

On 30th November 1956, the following issues were framed:-

(1) Whether the application is maintainable under Section 185 of the Indian Companies Act, 1913 ?

(2) Whether the respondent is in possession of the sums in question belonging to the company?

On 22nd July, 1960, the evidence for the official liquidator was closed and 19th August,1960, was fixed for recording the evidence for the respondent, an