Bombay High Court High Court

In vs Unknown on 29 September, 2010

Bombay High Court
In vs Unknown on 29 September, 2010
Bench: J.P. Devadhar, A. B. Chaudhari
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        IN THE HIGH COURT OF JUDICATURE AT BOMBAY.
                     NAGPUR BENCH, NAGPUR.




                                                                             
                                                     
               COMPANY APPEAL NO.6 OF 2010
                             IN
        COMPANY COMPLAINT APPLICATION NO.8 OF 2001 
                             IN




                                                    
         OFFICIAL LIQUIDATOR REPORT NO.42 OF 2000
                             IN
              COMPANY PETITION NO.1 OF 1998




                                         
    APPELLANT:           Shri Arun s/o Baburao Wadikar,
                            
                         aged about 51 years, r/o c/o Hardas
                         Magam, Bail Bazaar, Kamptee, Distt.
                         Nagpur.
                           
                                ..VERSUS.. 

    RESPONDENTS: 1. Official Liquidator, High Court,
          


                     Nagpur, havingt its office at 2nd Floor,
       



                     East Wing, New Secretariate Building,
                     Near V.C.A. Ground, Civil Lines,Nagpur.

                     2. Shri Sunil s/o Salenrao Ghorpade,





                         Plot No.64, Galli No.12, Vishwakarma
                         Post Office, Ajni, Nagpur.

                     3. Shri Purushottam Ramchandrao Malewar,
                         r/o 20 Surendra Nagar, Nagpur.





                     4. Shri Vijay Ramkrishna Khopde,
                         r/o Plot No.158, Bajaj Nagar, Nagpur.

                     5. Shri Digvijay Shingh s/o Ganbhirsing 
                         Mohite, r/o Plot No.7, Near Aman Kirana,
                         Bajaj Nagar, Nagpur.




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    =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
    Mr.S.S.Adkar, Adv. for the appellant.




                                                                                      
    Smt.Anita P.Shinde, Adv. for respondents.
    =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-




                                                             
                                  C
                                     ORAM
                                          :     J.P.DEVADHAR AND
                                               A.B.CHAUDHARI, JJ.
                                  DATED :      29th  September, 2010.




                                                            
    ORAL JUDGMENT:  (Per A.B.Chaudhari, J.)


    1.     Heard.




                                                

2. Admit. Taken-up for final disposal with the consent of

learned counsel for the rival parties.

3. In the present appeal, there is a challenge to the

judgment and order dated 18th December, 2009, whereby the

learned Company Judge discharged accused nos.2 to 5 in a

Criminal Case registered as Company Complaint No.8 of 2001

under the Companies Act, 1956. Learned counsel for the

appellant restricted his submission saying that after the

registration of the said Criminal case, no application for

discharge from the criminal case was at all filed.

4. However, the learned Company Judge has discharged

accused nos.2 to 5 recording finding that they did not have

any involvement. According to him, in absence of any

application and opportunity to oppose any such move for

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discharge, impugned order could not have been made.

5. Per contra, Smt.Shinde, learned counsel for the

respondents, opposed this appeal and argued that the learned

Company Judge had come to conclusion, though before the

end of trial looking to the affidavit, that there was no

involvement of respondent nos.2 to 5 and therefore, no fault

can be found out with the impugned order, even if there was

no application for discharge in the criminal case that was

registered.

6. Having heard the learned counsel for the rival parties, we

find that the learned Company Judge recorded his conclusion

of non-involvement of accused nos. 2 to 5 on the basis of

affidavit namely that accused nos. 2 to 5 had resigned as

Directors much before and hence they were not involved. We

find that it is not legal and proper to rely on such a bald

statement in the affidavit without insisting for documentary

evidence. Further, since the criminal case was registered by the

learned Company Judge and the trial was on, in the absence of

any application for discharge, appellant and others had no

notice of proposed discharge. If the accused nos.2 to 5, who

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wanted to say that they should be discharged, they could have

done so only by filing regular application with notice thereof to

all concerned which could have been contested and then

learned Judge could have made adjudication as to whether

discharge could be made or not. We, therefore, find that this

minimum procedure of adjudication before making order of

discharge in the absence of application for discharge was not

followed. Reliance placed on mere affidavit to hold that there

was no involvement, without putting the appellant on notice

by application for discharge is violation of principles of natural

justice. In the result, we find merit in the present appeal. We,

therefore, make the following order.

7. Company appeal is allowed.

8. The impugned order dated 18/12/2009 passed by the

Company Judge in Company Complaint No.8 of 2001 is set

aside relating to only to discharge of accused nos.2 to 5. We

reserve liberty to accused nos.2 to 5 to apply for discharge if

so advised.

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Costs of the Company Appeal be paid by respondent nos.

2 to 5 to the appellant.

                 JUDGE                       JUDGE.




                                                     
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