TMI Blog1997 (12) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel for the applicant. Dany Dairy and Food Engineers Ltd. (hereinafter referred to as "the company in liquidation") was ordered to be wound up, vide order dated March 18, 1993, passed by this court and the official liquidator, High Court, has been appointed as the liquidator and the winding-up proceedings are pending before this court. It has been stated in the present application that for the assessment years 1983-84, 1984-85, 1985-86, and 1986-87 income-tax assessments have been made against which the company filed appeals which are pending before the "D" Bench of the Income-tax Tribunal at Delhi. Notice has been issued to the applicant, Nargis Malik, who is one of the directors of the company under section 179 of the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs at the relevant time. It is, therefore, for the said ex-director to appear before opposite parties Nos. 2 and 3 and to show cause. I see no reason why the official liquidator be called upon to take over the said task to get the ex-director defended by engaging a counsel and bear the expenses. Learned counsel for the applicant has, however, contended that in view of the provisions of section 457(1)( a ) of the Act, the official liquidator in a winding-up proceeding has to defend any suit, prosecution or legal proceedings, civil or criminal on behalf of the company, consequently, it is the duty and the responsibility of the official liquidator to prosecute the said appeals. I am unable to agree. The assessments were made, as already seen a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 446(1) of the Act. Secondly, the dues against the company pertain to the period which being much prior to the winding-up order and against the assessments where the company through its directors had already filed appeals which were pending and the official liquidator is not expected to pursue the same on behalf of the directors. The company has huge liabilities having taken very heavy loans from the banks and financial institutions. In comparison to the same, the assets are almost nil or negligible. The present application is a device on behalf of the directors to try and shove their responsibility on the official liquidator. This could never be the intention of the Legislature, nor can the provisions of section 457(1)( a ) b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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