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2012 (5) TMI 14 - KARNATAKA HIGH COURTApplication filed by the Official Liquidator – misapplication of funds belonging to the company to the extent of Rs. 1,88,60,835/-and are therefore guilty of misfeasance and breach of trust - Held that:- No contrary material to indicate that the said entries were dishonestly made by the first respondent for his benefit and to cause loss to the Company-in-liquidation and has been misapplied by him – since the first respondent was also a Director in the sister concern, the adjustment of amounts by Journal entries cannot be considered as a benefit derived by the first respondent for himself - as the amount which was due to the Company-in-liquidation from the sister concern as against the dues from the Company-in-liquidation to its sister concern as Indicated item wise has been wiped out by book adjustments by virtue of the journal entries but no personal benefit is evident or is proved – in favour of assessee.
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