2005 (8) TMI 391 - HC - Companies Law

Summary

Issues: Application under sections 446 and 447 of the Companies Act, 1956 for summoning respondent, liability fixation, payment order, interest, and decree.

Analysis:
1. The applicant sought summoning and examination of the respondent under section 477 of the Companies Act, 1956 to fix liability and order payment of Rs. 7,400 plus interest. Alternatively, requested trial under section 446 for a decree. The court noted the appearance of poor loan recipients with honesty while those with higher sums manipulated notices.

2. The respondent had already paid Rs. 5,000 of the principal amount. The court found the applicant's prayer for interest on the principal unjust considering the respondent's honest appearance. Acknowledging the difficulty in reaching clever individuals capable of manipulation, the court emphasized fairness in dealings.

3. Consequently, the court disposed of the application by directing the Official Liquidator to accept Rs. 5,000 as full and final payment from the respondent. The judgment reflected a balance between honoring honest appearances and addressing the challenges posed by individuals adept at manipulation.