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2026 Supreme(Online)(Ker) 33483
IN THE HIGH COURT OF KERALA AT ERNAKULAM
Harisankar V. Menon, J
Himavarsha Kuries Private Limited – Appellant
Versus
Sivaraman K.S – Respondent
CC NO. 528 OF 2021
For the Appellants/Petitioners: S.Jasmine
The court acts under its summary jurisdiction to determine and recover outstanding debts due to a company in liquidation, limited precisely to the proven remaining arrears after adjusting for any duly verified payments made by the respondent.
Headnote:The Official Liquidation proceedings were initiated under the Companies Act, 1956, against a company in liquidation to recover outstanding debts. The liquidator sought the recovery of Rs.10,000/-, while the respondent contended that partial payments had been made. Upon verification of the submitted documents, the court found that the respondent had successfully remitted 55 out of 60 instalments, leaving a remaining liability of Rs.5,000/-, which the court ordered to be paid with interest. The primary issue involved the determination of the actual outstanding debt of the respondent towards the company in liquidation. The court, relying on the documentary evidence, particularly the original passbook of the kuri, reasoned that the respondent's liability should be restricted to the unpaid instalments. The ratio decidendi established that the debt amount is limited to the proven arrears after accounting for verified payments. The court decreed the claim for Rs.5,000/- along with interest at the rate of 4% per annum from 24.08.2012 until the date of realisation, with no order as to costs.
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| 1. court verifies existing records to determine actual outstanding liabilities of a respondent in liquidation proceedings. (Para 1 , 2 , 3) |
JUDGMENT
This company claim is instituted by the Official Liquidator, seeking realisation of Rs.10,000/- from the respondent herein, payable to the company under liquidation.
2. The respondent entered appearance and pointed out that he has paid the amount due to the company. Pursuant to the directions in the order dated 05.02.2026, the respondent has also produced the documents in support before the Official Liquidator.
3. The Official Liquidator, after perusing the documents produced in support, including the original of the passbook of the kuri, has filed a statement dated 27.02.2026, pointing out that out of the 60 instalments, 55 instalments have been paid by the respondent, and only five instalments are due. Therefore, the balance payable by the respondent to the company under liquidation is Rs.5,000/- The respondent, in such circumstances, is liable to pay the afore amount with interest from 24.08.2012.
Therefore, this company claim is decreed and an amount of Rs.5,000/- is realisable from the respondent along with interest at the rate of 4% per annum on the principal debt amount from
24.08.2012 till the date of realisation. No costs.
