OFFICIAL LIQUIDATOR OF M/S. ATHREYONIX SYSTEMS PRIVATE v. SRI. ASHOK PRAKASH

OFFICIAL LIQUIDATOR OF M/S. ATHREYONIX SYSTEMS PRIVATE LIMITED ( IN LIQUIDATION) ATTACHED TO HIGH COURT OF KARNATAKA, IV FLOOR, D AND F WING, KENDRIYA SADAN, KORAMANGALA, BANGALORE - 560 034. …APPLICANT Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA (BY SRI. SHRISHAIL NAVALGUND, ADVOCATE) AND:

SRI. ASHOK PRAKASH, NO.50, KAMAKSHI, III CROSS, CENTRAL EXCISE LAY-OUT, VIJAYANAGAR, BANGALORE - 560 040.

SRI. PRADEEP VISAL, S/O MR. DEVIDAS VISAL, NO. 1/15, MADHAV BUILDING, NAMDEVAN APARTMENTS, LUISWADI, THANE - 400 064. - 2 - NC: 2024:KHC:3379 CA No. 1083 of 2002 IN COP NO.53/2001

SRI. PANKAJ KUMAR SHARMA, S/O MR. S.L TEJKAPAL, FLAT NO. 130, BHARATH APRTMENTS, SECTOR 13, ROHINI, NEW DELHI - 110 085.

SRI. G.R. SANGHVI, C/O. SRI. ASHOK PRAKASH, NO. 50, KAMAKSHI, III CROSS, CENTRAL EXCISE LAYOUT, VIJAYANAGAR, BANGALORE - 560 040. …RESPONDENTS (BY SRI. RAMESH ANANTRAM, ADVOCATE FOR R1; VIDE ORDER DATED 07.09.2007, APPLICATION AGAINST R2 AND R3 IS DISMISSED; VIDE ORDER DATED 05.01.2011, APPLICATION ABATED AGAINST R4; SRI. P.B. APPAIAH, APPLICANT IN CA 592/2012 UNREPRESENTED) THIS COMPANY APPLICATION IS FILED UNDER SECTION 454(5) AND (5A) OF THE COMPANIES ACT, 1956, READWITH RULE 132 OF THE COMPANIES (COURT) RULES, 1959 PRAYING TO A) TAKE COGNIZANCE OF THE OFFENCE COMMITTED BY THE ACCUSED HEREIN NOT COMPLYING WITH THE REQUIREMENT OF PROVISION OF SECTION 454 OF THE COMPANIES ACT, 1956 AND TO TRY THEM FOR THE SAID OFFENCE IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN THE CODE OF CRIMINAL PROCEDURE AND PUNISH THEM ACCORDINGLY AND ETC. THIS COMPANY APPLICATION, COMING ON FOR FINAL HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER This application is filed under Section 454(5) and (5A) of the Companies Act, 1956. That the Company - 3 - NC: 2024:KHC:3379 CA No. 1083 of 2002 IN COP NO.53/2001 viz., M/s Athreyonix Systems Private Limited was ordered to be wound up by order dated 15.03.2002. The present application is filed on the premise that within 21 days from the date of winding up order, the documents relating to statement of affairs were not furnished to the Official Liquidator. Pursuant to the application, notices have been issued to the respondents who are the former Directors of the company.

2. Thereafter, application against respondents No.2 and 4 dismissed on 07.09.2007 and

05.01.2011 respectively. The application is pending only against respondent No.1.

3. The Official Liquidator to substantiate the contention that requirement under the Companies Act, 1956, post order of winding up is not complied by the Directors of the company, has produced the records at Ex.P1 to Ex.P15. Ex.P9 is the relevant document which - 4 - NC: 2024:KHC:3379 CA No. 1083 of 2002 IN COP NO.53/2001 reveals that the first statement of account is furnished by respondent No.1, (one of the Director's) on

21.03.2006. The Official Liquidator not being satisfied with the compliance, raised certain objections to the alleged compliance by the respondents and after series of correspondence between the Official Liquidator and respondents, on more revised statement of affairs was furnished on 01.01.2007 and the same is marked at Ex.P13. Thereafter, one more notice was issued by the Official Liquidator pin pointing the defects in the alleged compliance by respondent No.1. In terms of the letter dated 30.03.2010, which is marked at Ex.P15, respondent No.1 has replied stating that whatever that could be complied at the hands of respondent No.1 have been complied and he has also referred to in his letter, that remaining Directors are not available.

4. Referring to these documents, it is urged by the learned counsel for the Official Liquidator that the - 5 - NC: 2024:KHC:3379 CA No. 1083 of 2002 IN COP NO.53/2001 violation on the part of respondent No.1 in not furnishing the statement of affairs of the company within 21 days from the date of order of winding up is very much established.

This court has considered the materials placed on record. It is not the defence of the respondents that compliance was made within 21 days from the date of winding up order. As can be noticed from Ex.P9, the first attempt to comply the requirement of Section 454 of the Companies Act, 1956 was made on

21.03.2006 and thereafter again, the Official Liquidator has noticed various discrepancies in the compliance report submitted by respondent No.1 and the same was rectified on 01.01.2007 as can be noticed from Ex.P13.

Though, the learned counsel for the Official Liquidator would urge that the compliance has to be accepted with effect from 30.03.2010, this court on perusal of the records would hold that the compliance is - 6 - NC: 2024:KHC:3379 CA No. 1083 of 2002 IN COP NO.53/2001 made on 01.01.2007. Thus, taking 01.01.2007 as the effective date of compliance, this court is of the view that there is a delay of 1732 days in complying the requirement of Companies Act, 1956. The provision provides for penalty of Rs.1,000/- per day. Thus, the total penalty to be imposed is Rs.17,32,000/-. A penalty of Rs.17,32,000/- is imposed on the first respondent.