HON’BLE SRI JUSTICE K. LAKSHMAN COMPANY APPLICATION No.276 of 1999 in Company Petition Nos.85, 97 and 108 of 1998

ORDER

Heard Sri G. Kalyan Chakravarthi, learned Standing Counsel for the Official Liquidator and Ms.Katta Sravya, learned counsel for respondent No.1. Perused the record.

2. According to the learned Standing Counsel for the Official Liquidator and learned counsel for the petitioner, accused No.2 has resigned from the company in liquidation itself on 16.07.1998. In respect of accused No.3, notice sent to him was returned un-served with an endorsement vide Annexure G. Accused No.4 resigned from the company in liquidation itself on 16.07.1998. Notice sent to Accused No.5 was not returned. Despite service of notice, Accused No.5 neither filed the statements of accounts before the Official Liquidator nor sent any reply. Accused No.6 resigned from the company in liquidation in March, 1998. Notice sent to Accused No.7 was returned un-served with an endorsement ‘not reachable’. Accused No.8 was discharged by this Court. Accused No.9 died.

3. This application is filed under Sections 454 (5) and 5A of the Companies Act, 1956 to summon the accused and to punish them in terms of the aforesaid sections.

4. Respondent No.1 has filed counter.

5. It is relevant to note that during the pendency of the present application, accused No.1 has filed the statements of accounts before the Official Liquidator.

6. To prove the guilt of the accused, Official Liquidator examined P.W.1 and accused No.1 as A.W.1 and marked

22 exhibits.

7. On consideration of the said aspects, vide order dated 20.06.2019, this Court directed respondent No.1 to approach the Official Liquidator on 24.06.2019 at 10:30 A.M., at his office. On 27.06.2019, this Court modified the order, dated 20.06.2019 and directed accused No.1 to appear before the Official Liquidator on 01.07.2019 at 10:30.A.M. Vide order dated 18.07.2019. This Court adjourned the matter on the request made by the Official Liquidator. On 03.01.2020, this Court after considering the statements made by both the counsel, the loans and advances Schedule-III, the statement of affairs filed by A.1 without furnishing full addresses, ledger folio numbers, date when contracted, last date of transaction and the nature of liability, observed that the case requires assistance of the learned counsel for the Official Liquidator. Thus, respondent No.1 has appeared before the Official Liquidator. The State Bank of India has filed application vide O.A.No.1498 of 1999 and the same was decreed.

8. Official Liquidator has filed report dated 09.07.2021 stating that the order for winding up was passed on 21.01.1999 and even as per the figures as on 30.06.1997, the company’s liability to secured and unsecured creditors is about Rs.3.57 crores, recoverable current assets and loans and advances is about Rs.7.02 crores, apart from fixed assets valued at Rs.1.02 crores, aggregating to Rs.8.04 crores. Because of efflux of considerable amount of time, the loans and advances and debts have become time barred. He has also mentioned about filing of O.A.Nos.203 and 1948 of 1999 and also Review Petition No.1 of 2005, which are pending.

9. The Official Liquidator has filed latest report dated 16.04.2025 stating that the ex-directors have neither rectified the defects pointed out in the statement of affairs nor submitted the information sought by this office in spite of several orders of this Court. Thereafter, the Official Liquidator sought a direction to accused Nos.1 to 9 to attend the office of the Official Liquidator on any working day with prior permission and submit the information/documents as required in the statement of affairs and also sought by this office in the comprehensive report dated 09.07.2021 so as to complete the liquidation proceedings as early as possible. It is further stated that as on 31.03.2025, the funds available to the credit of the company (in liquidation) is Rs.12,75,188/-

10. The Official Liquidator has further