High Court Kerala High Court

Sri.Moideen Shah vs The Mayuram Chitties & General … on 6 September, 2010

Kerala High Court
Sri.Moideen Shah vs The Mayuram Chitties & General … on 6 September, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

Co.Appeal.No. 51 of 2010()


1. SRI.MOIDEEN SHAH, QUEEN STUDIO,
                      ...  Petitioner
2. SMT.SULEKHA MOIDEEN SHAH,

                        Vs



1. THE MAYURAM CHITTIES & GENERAL FINANCE
                       ...       Respondent

                For Petitioner  :SRI.M.R.VENUGOPAL

                For Respondent  :SRI.K.MONI

The Hon'ble MR. Justice K.M.JOSEPH
The Hon'ble MR. Justice T.R.RAMACHANDRAN NAIR

 Dated :06/09/2010

 O R D E R
       K.M.JOSEPH & T.R.RAMACHANDRAN NAIR, JJ.
        ------------------------------------------------------
              Company Appeal No.51 of 2010
           ----------------------------------------------
         Dated, this the 6th day of September, 2010

                         J U D G M E N T

K.M.Joseph, J.

This appeal is filed feeling aggrieved by the grant

of interest in judgment dated 26.5.2010 in C.C.No.15/2009 in

CP No.34 & 53 of 2002. We heard the learned counsel for the

appellants and learned counsel for the liquidator.

2. The case of the appellants is that the learned

Single Judge has erred in granting interest from 5.3.2000 at

6 %. A review petition was filed which resulted in Annexure-I

order rejecting the review filed by the appellants.

3. According to the appellants, this is a case

where the Directors of the company were absconding and the

kuri company was closed and that it was only because the

company was not in existence, the appellants could not effect

the balance payment from the 38th instalment onwards. It is

also the case of the appellants that they could only know from

their enquiry that the head office of the company is in

Faridabad. It is the further case of the appellants that they

have not received any demand notice allegedly issued on

COA No.51/2010 -2-

2.2.2007. The date of winding up order is passed on August,

2004 and the company claim has been filed in August 2008

and it is seen numbered only in 2009. Accordingly, it is the

case of the appellants that they are not responsible for the

delay and that it happened solely due to the respondent. It

is submitted that the learned Single Judge has not considered

these aspects when he ordered 6% interest from 5.3.2000.

4. After having heard the learned counsel, we feel

that interest of justice would be subserved if the direction to

pay the interest is sustained, but, at the rate of 4%.

Accordingly, we modify the judgment and decree and we

direct that the appellants shall be liable to pay a sum of

Rs.1,66,465 together with interest at 4% per annum from

5.3.2000 till the date of decree and at 6% per annum from

the date of decree till the date of realisation together with

proportionate costs.

(K.M.JOSEPH)
JUDGE.

(T.R.RAMACHANDRAN NAIR)
JUDGE.

MS