Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2010 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (11) TMI 844 - HIGH COURT OF MADRASApplication under sections 542 and 543 of the Companies Act, 1956 Held that:- In the case on hand, the respondents have given explanation about the clearing of dues with the two secured creditors and the same is borne out on records. As regards the vehicle, the respondents have given a reasonable explanation stating that even though the vehicle was shown at a depreciated value of ₹ 1,67,816 as on March 31, 1993, due to wear and tear over the past ten years, the value of the vehicle declined and therefore, the same was ultimately sold. This, in my considered view, cannot be a reason for the purpose of invoking sections 542 and 543 of the Companies Act, 1956. Having regard to the seriousness of the provisions and there being no material against the ex-directors, the allegations stand unproved. This application does not merit acceptance and therefore, the same stands dismissed.
|