TMI Blog1976 (11) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... raders Ltd., Sirsa, was wound up by voluntary liquidation by means of a resolution dated March 26, 1959. The respondent was an agent of the appellant-company from October 1, 1950, to December 31, 1951, entrusted with the work of sale of shares and supply of articles to the customers. In the course of the performance of his duties, he collected some money, but failed to deposit the same in the bank account of the appellant-company or to remit the same to the latter's head office. The books of the appellant-company showed a debit balance of Rs. 1,114-15-6 against the respondent. According to the account, a copy of which is exhibit P-1, the amount due from the respondent up to December 31, 1951, was Rs. 2,582-11-6, while the amount to his cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent under section 34 of the Indian Evidence Act. The present appeal is directed against that judgment of the learned single judge. It has been strenuously urged by Shri Roop Chand, the learned counsel for the appellant-company, that the petition of the company is under section 468, read with section 518 of the Act, and, thus, it could not be thrown out on the ground of limitation. Section 468 of the Act is reproduced below: "The court may, at any time after making a winding-up order, require any contributory for the time being on the list of contributories, and any trustee, receiver, banker, agent, officer or other employee of the company, to pay, deliver, surrender or transfer forthwith, or within such time as the court directs, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the old Act, or article 3 of the new Act, is applicable, the claim of the appellant-company cannot be held to be time-barred. The claim of the appellant-company cannot also be thrown out on the ground of limitation under section 543 of the Act, because this provision is not applicable to the case of the respondent. Sub-section (1) of section 543 of the Act clearly shows that this provision is applicable only to those persons who take part in the promotion or formation of a company or directors, past or present, managing agents, secretaries and treasurers, managers, liquidators, or officers of the company. The respondent was working only as an agent to carry on the sales on behalf of the appellant-company. So, he is not covered by any of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant-company is barred by time is, thus, reversed. Regarding merits of the claim, Shri Amar Nath, P.W. No. 1, appeared in the witness, box. He was working as a managing director of the appellant-company before it was wound up. He has unequivocally stated that the respondent was entrusted with the duty of making sales of the products of the company on its behalf and that though he carried on this business from October 1, 1950, to December 31, 1951, and collected some amounts, yet did not deposit the same in the accounts of the company or remit the same to the company and that after giving adjustment of all amounts sent by the respondent, an amount of Rs. 1,114-15-6 was due from the respondent. The account relating to the respondent was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient to fasten the liability on the respondent. There is nothing on the record, to show that the statement of the managing director cannot be given credence. It seems, the attention of the learned single judge was only confined to the entries in the books of account, and the statement made by Shri Amar Nath, managing director, was not brought to his notice. We are, therefore, constrained to reverse the finding of the learned single judge in this respect and hold that there is sufficient evidence to arrive at the conclusion that the respondent is liable to pay the amount of Rs. 1,114-15-6 to the appellant-company in lieu of the sales which he made as agent of the company. For the reasons mentioned above, we accept the appeal, allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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