Liquidator Turret Motors V. Charles Et Al

1943 Present: de Kretser and Jayetileke JJ.

LIQUIDATOR TURRET MOTORS, Appellants, and CHARLES et al, Respondents.

307-D. C. Colombo, 13,252

Companies Ordinance, No. 51 of 1938, ss. 121 and 132 (1)-Action of auditors- Duties of auditors-Preparation of balance sheet-Failure by Directors to prepare balance sheet-Claim by auditors -for fees.

Under section 121 of the Companies Ordinance it is the duty of the Directors of a Company to prepare a balance sheet.

In the absence of a balance sheet the only duty cast on the auditors , is to report to the members on the accounts examined by them.

Where the auditors have failed to do so, they are not entitled to any remuneration.

APPEAL from a judgment of the District Judge of Colombo.

N. Nadarajah, K.C. (with him N. Kumarasingham and H. W. Thambiah), for defendants, appellants.

G. Thomas, for plaintiffs respondents.

Cur. adv. vult.

July 2, 1943 JAYETILEKE J.-

This is a claim by the plaintiffs who carry on business in partnership as auditors and accountants, against the defendant company represented by their liquidator, one Sambamurti, for the recovery of a sum of Rs. 550 a

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