The High Court · 2025

Road No.47, Jubilee Hills, HYDERABAD - 500 037 Sri Bharat Venkat Epur, S/o E-V.Ram Reddy, No.6, lll Street, Subbarao Avenue, CHENNAI - 600 006. Sri P. Chandramohan, S/o P. Purna Chandra Rao, 'Megana' 8-2-27 1lC, Sriniketan Colony, Raod No.3, Banjara Hills, HYDERABAD - 500 034. Sri S. Dayanand, S/o C.B. Shanmugam, Plot N0.831, Raod No.41, Jubilee HiIIs, HYDERABAD _ 5OO 037. Mrs. Vaidehi Rajagopalam, 101 , Balaji Apartments, Anand Nagar, HYDERABAD - 5OO OO4, Sri Rohinton Noris, S/o Jall Noris, Gen. Chowdhary Road, 22123, P & f Colony, Secunderabad - 9. Sri Shahab Alam, S/o Prof fvlansoor Alam, 2-2-1111, A 3, 'Rubban', Durgabai Deshmukh Colony, Hyderabad - 7 . Sri S. Rama Krishnan, S/o Late R.S. Mahadevan, 1-1-7501N2, Gandhi Nagar, Hyderabad - 080. Sri K. Anil Kumar, (Katragadda), 8-3-1047, Srinagar Colony, Hyderabad - U/J, (R8 discharged vide Court order dated 22-6-01) ...Accused Application under Section 454(5) and (5A) of the Companies Act, Rules 125 and 132 of the Company (Court) Rules, 1959 praying that this Hon'ble Court may be pleased to: i) ii) Summon the accused herein and to punish them s L r-sections (5) and (5A) of section 454 of the Companies Act, 1956 for r n-compltance with the requirement of Section 454 of the Cornpanies Ac: 1956; and order the cost of this application to come out of asse.! of the company. This application coming on for orders, upon reading th-. and the affidavit dated 04.06 1999 filed by Sri S.R V.V.Sa,y Liquidator attached to High Court of Andhra Pradesh, Hydr: the Company Applicatron and upon hearing the argumer t J udge's summons lnarayana, Official rbad in support of of Sri G. Kalyan Chakravarthy, Standing Counsel for the Official Liquidator 1c the Applicant and Ms. Katta Sravya, Advocate for the Respondent No.1. The Court made the following: ORDER B HON'BLE SRI JUSTICE K. LAKSHMAN COMPANY APPLICATION No.275 of 1999 '1 I loe i.o aor'\? AFIY Ai'r3( ! o r.1 t'to< 85 llc8 ORDER: Heard Sri G. Kalyan Chakravarthi' learned Standing Counsel for the Offrcial Liquidator ald Ms.Katta Srarya, learned counsel for respondent No.l. Perused the record'

2. According to the iearned Standing Counsel for the Ofhcial Liquidator ald learned counsel for the petitioner' accused No.2 has resigned from the colnpany 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 compary in liquidation itself on 16 07'1998' Notice sent to Accused No'5 was not returned' Despite service of notice, Accused No.5 neither hled 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 " '. i... .,. 1 'not reachable'. Accused No.8 was dischar 1ed by this Court. Accused No.9 died

3. This application is filed under Section; 454 (5) and 5A of the Companie s Act, 1956 to summor fie accused and to punish tl-rem in terms of the aforesaic ;r:ctions

4. Respondent No.1 has fiied counter. 5. I1 is relevar-rt to note that during the pe: lency of the present appLcation, accused No.1 has fi1ed the statements of accounts before the Official Li<l Lidator.

6. 'l'o prove the guilt of the accused, Offic r1 Liquidator examined P.W. 1 and accused No.1 as A.W. I tnd marked 22 exhibits

7. On consideration of the said aspectr; vide order dated 20.06.2019, this Court directed resporr lent No.1 to approach the Olftcial Liquidator on 24.06.'2219 at 10:30 A.M., at his office. On 27.06.2019, this CorLrt rno4i1i"O the order, dated 2O.06.2019 and directed acr: rsed No.1 to appea-r before the Official Liquidator on 0107.2019 at 1O:30.A.M. Vide order dared 18.07.2OL9. This Court i t 3 adjourned the matter on the request made by the Ofhcial Liquidator. On 03.01.2020, this Court after considering the statements made by both the counsel, the loans and advances Schedule-lll, 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 Ofhcial Liquidator. The State Bank of India has filed application vide O.A.No.i498 of 1999 and the same was decreed.

8. Offrcial Liquidator has filed report dated 09.O7.2021 stating that the order for winding up was passed on 2l .O1.1,999 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 ald loans and advalces is about Rs.7.O2 crores, apart from hxed assets valued at Rs.1.02 crores, I i { I i I I I r.. .'1 ."1 .,/-- .r, :1lj 4 aggregating to Rs.8.04 crores. Because rt efflux of consicierablc atrount of time, the loans and : lvances and debts har.c Lrecome time barred. He has al; r mentioned about filing of O.A.Nos.2O3 and 1948 of L I )9 ald also Revieu'.Petition No.1 of 2OO5, rvhich are penrl ng.

9. The Oflicial Liquidator has filed latest i:port dated

16.O4.2025 stating that the ex directors I ave neither rectified the dcfects pointed out in the s atement of affairs nor submitted the information sor r lht by this office in spitc of several orders of this CourL Thereafter, the Official Liquidator sought a direction to accused Nos.1 to 9 to attend the office of the Oflicial , quidator on erny working day with prior permission al<l submit the information /documents as required in the s atement of affairs and also sought by this olf r e in the comprehensir,e report dated O9.07.2021 so :rr; to complete the liquidation proceedings as early as por sible. It is further stated that as on 31.03.2025, the ftu r ts available . | 'u ;, to the credit of the company (in liquidation) is Rs.12,75,188/-

10. The Ofhcial Liquidator has further stated that in pursuance of the directions of this Court, claims have been invited by publishing the notice in the newspapers' fixing date by 28.02.2022. In response to the said notice' no ciaim has been submitted by aty creditor including workmen. However, prior to invitation of claims'. Official Liquidator has received 15 claims voluntarily'

11. Sri G. Kalyan Chakravarthi, learned Official Liquidator, on instructions, would submit that the ofhcial liquidator has already disposed of the said 15 claims submitted voluntarilY. 12, As discussed supra, except Al others have not appeared. A9 died. In pursuance to the orders passed by this Court, respondent No' 1 has hled statement of affairs ' Official Liquidator has not received any claims pursuant to the notice published in the newspaper' Further' he has disposed of 15 claims filed before him voluntarily' As on ) , -) -c -.. 6

31.03 2025 the available credit of the ( lompany 1n liquidzrtion is Rs.12,75,188/-. In the light r f the same, this Court is of the opinion that there ir; no need of keeping the proceedings pending against er cused No.1. The present proceedines a,re abated aga i rst accused No.9, who died

13. in the light of thc aJoresard discussion i rLd report of Ofhcial Liquidator, dated 16.021.2025, this I rplication is dismissed. However, liberty 1S granted tc the Official Liquidator to takc sleps against the I cmpany 1n liquidation in accordancc with law. No costs As a sequcl, the rniscellaneous petiti n'rs, if any, pending in this Compan.,' Application shall s.i ld closed SD/- A \ .S.S.C.S.M.SARMA JOINT REGISTRAR I ! //TRUE COPY// l sEcrroru oFFrcER To,

1. The Official Liquidator, M/s. Genius Financial Servtces floor, Corporate Bhawan, Bandlaguda, Nagole, Hyderab a 2. The Registrar of Companres, Ministry of Corporate Al lndia 2d floor Corporate Bhawan, Nagole, Bandla(lr Village Hayathnagar Mandal, Ranga Reddy Distr c Pin Code 500 680.

3. The Regional Director, South Eastern Regron. tV, Affairs, 3' floor Corporate Bhawan, Nagole, Bandla(l Village Hayathnagar Mandal, Ranga Reddy District - Code 500 680. .imited, Office at 1st i -500068. lrrs, Government of Ca, Thattiannaram . Telangana State istry of Corporate da, Thattiannaram elangana State, Pin .Y 1 ]he S-. O O S. Section, High Court at Hyderabad, for the State of Tetangana. 5 One CC to Sri G. Kalyan Chakravarthy, Counsel for Official Liquidato;, High 6. One CC to l\ils. Katta Sravya , Advocate IOPUC] Court for at Hyderabad [OPUC] kam/PSL / HIGH COURT DATED:0910612025 1 ) I \ \ ORDER COMPA.No.276 of 1999 CP.Nos.8S , 97 & 108 of 1 998 -'.,. ../:. : ' '.t t,l -- ' i,r', / ? 025 \.i - , : : -j-;ri .. + .,' r, --' DISMISSING THE COMPANY APPLICATION J f,