(Judgment of the Court was delivered by M.CHOCKALINGAM, J.,) Challenge in this appeal is to the order of dismissal dated 09.04.2002 passed by a learned single Judge of this Court in Company Application No.989 of 2001 in Company Petition No.97 of 1970.
2. The Court heard the learned Special Government Pleader appearing for the appellant. No representation is made on the side of the respondents.
3. From the available materials, it could be seen that pursuant to the order of winding up dated 23.07.1971 in C.P.No.97 of 1970, M/s.Hind Mercantile Corporation Private Limited was ordered to be wound up; the Official Liquidator, High Court, Madras, who was appointed as Liquidator of the said Company, as per the orders of the Court, took charge of the assets and also pursuant to the orders, some of the properties were sold and recovery has also been made from the debtors; it is seen that the proceedings are also pending before the Taxation Department and also before the Courts; pending the same, a claim was made by the appellant herein, claiming rate of interest at 2.5% per month on the principal amount; while so, O.A.No.990 of 1991 was filed, in which it was urged by the Official Liquidator that the claim of interest was excessive and as per Rule 179 of the Companies Court Rules, 1959, the payment of subsequent interest could be made not exceeding 4% per annum on the admitted amount of the claim and hence, calculating the interest at the rate of 4% per annum on the principal amount of Rs.2,33,601.25 from the date of the winding up orders i.e.from 23.07.1971 to 10.04.2002, the interest alone would amount to Rs.2,86,000/-. The learned single Judge, after considering the same, accepted the contention of the Official Liquidator and ordered for issuance of a cheque for a sum of Rs.5,19,601.25 calculating the rate of interest at 4% per annum on the claim amount. Challenging the same, the present appeal has been filed.
4. The only contention put forth by the learned counsel for the appellant is that the claim was made actually by the Commercial Tax Department, Karnataka and the interest is at 2.5% per month, to which the petitioner was entitled and thus, the awarding of interest at 4% per annum was not reasonable and apart from that, now lot of assets are in the hands of the company, which are in excess of its liabilities and under such circumstances, the entire interest, as claimed in the application, has got to be ordered.
5. The amount of claim made from the Official Liquidator would represent the principal amount due to the Commercial Tax Department along with interest thereon. No representation is made on behalf of the respondents and the impugned order is passed by the learned single Judge on 09.04.2002 and now, seven years have elapsed. At this juncture, as on today, as contended by the learned counsel for the appellant, it is not brought to the notice of this Court as to the actual extent of lands at the hands of the company in liquidation as on date, and to what extent the liabilities have been met and whether the company is revived.
Under such circumstances, the order of the learned single Judge is set aside and the appeal is allowed and the matter is remitted to the Company Court to decide the matter as to whether the contentions put forth by the appellant have got to be considered and after getting a report with regard to the stage of the administration of the company in question, which was wound up as per the orders of this Court dated 23.07.1971, pass orders on merits and in accordance with law. No costs. Consequently, connected C.M.P.is closed.
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