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2026 Supreme(Online)(Ker) 33960
IN THE HIGH COURT OF KERALA AT ERNAKULAM
Harisankar V. Menon, J
Fundamental Chits (P) Ltd. – Appellant
Versus
Kunhimon N. – Respondent
CC No.119/2012 | Co. Pet. No.42/2007
For the Appellants/Petitioners: S. Jasmine
For the Respondents: N. Krishna Prasad
In company liquidation proceedings, once a claim for outstanding dues is verified by the Official Liquidator, a respondent's unsubstantiated and demonstrably inconsistent document (such as a receipt dated after the company's operations ceased) is insufficient to defeat the claim for recovery.
Headnote:The matter involves a claim by the Official Liquidator for the recovery of arrears in the context of a company in liquidation under the Companies Act, 1956. The court examined the validity of a receipt produced by the respondent to dispute the outstanding balance. The court found that the receipt was likely fabricated, as it was dated after the cessation of the company's operations. The core issue was whether the respondent had discharged their financial liability to the company. The court reasoned that the discrepancy in the dates regarding the company's operational period and the failure of the respondent to justify the document or obtain further instructions necessitated the rejection of the defense. The ratio decidendi rests on the lack of proof for alleged remittances and the proven inability of the respondent to counter the claims. The court decreed the claim for the principal amount along with interest at the rate of 6% per annum.
| Table of Content |
|---|
| 1. assessment of evidence and claims in liquidation proceedings. (Para 1 , 2) |
| 2. rejection of fabricated defenses and final decree of payment. (Para 4 , 5) |
JUDGMENT
The Official Liquidator has filed the captioned company claim seeking realisation of Rs.85,000/- from the respondent herein, with interest at 12% per annum from 15.05.2005.
2. Heard the learned Standing Counsel for the Official Liquidator, as well as the learned counsel for the respondent herein.
3. A counter affidavit has been filed by the respondent dated
06.08.2014, pointing out that the claim made is incorrect and that, even subsequent to 15.05.2005, remittances have been made by the respondent, as evidenced by Annexure R1 dated 06.06.2006. The Official Liquidator has filed a reply statement. In the reply statement, it has been pointed out that, all remittances made by the respondent have been duly given credit to, and it is only thereafter that the arrears payable were quantified at Rs.85,000/- as on 15.05.2005. It is further pointed out that the company was functioning only till 30.03.2006, whereas Annexure R1 is of the date 06.06.2006, which itself would show that Annexure R1 is a fabricated one. The learned Standing Counsel for the Official Liquidator further adds that, even the original of Annexure R1 has not been produced, in spite of the specific direction issued by this Court on 27.06.2019.
4. In the light of the afore, I am of the opinion that the contentions raised in the counter affidavit are without any merit. This is especially so, since Annexure R1 is dated 06.06.2006 and the company was functioning only till 30.03.2006.
5. In the light of the afore, the learned counsel for the respondent has been seeking time for getting further instructions in the matter, and in spite of granting more than sufficient opportunities, the learned counsel has not been able to obtain instructions from the respondent in the matter.
In the light of the afore, this company claim is decreed and an amount of Rs.85,000/- is realisable along with interest at the rate of 6% per annum on the principal debt amount from 15.05.2005 till the date of realisation.
No costs.
