1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR COMPANY ِ APPLICATION (O) NO. 1138/2010 IN COMPANY APPLICATION NO. 8/2008 IN COMPANY PETITION NO. 13/2002 AIRISING OUT OF O.L.R. NO. 6/2006 (Official Liquidator and Liquidator of M/s. Narendra Dada Agro Industries Ltd vrs. Mr. Ramesh Sadashivrao Chaurasia and others) ................................................................................................................................................... Office Notes, Office Memoranda of Coram, appearances, Court's orders Court's or Judge's order of directions and Registrar's orders ................................................................................................................................................... Shri Anjan De, counsel for official Liquidator Shri U.K.Bisen, counsel for R-1 to 5 Shri Balpande, counsel h/f Shri R.S. Parsodkar counsel for R-6, 7 & 9 Shri N.A.Padhye, counsel for respondent CORAM : R. K.DESHPANDE, J. DATED : 1st APRIL, 2011. This application has been filed by non- applicant No. 1-B, who is a legal heir of non- applicant No.1 (deceased), who was the ex-Director of the Company under liquidation. The application is for dropping the proceedings under Section 543 and 544 of the Companies Act, discharging the 2 non-applicant no. 1-B from the said proceedings. On the basis of the report of the Chartered Accountant the points of claim have been filed. Prima facie, the report of the Chartered Accountant indicates that the ex-Directors are jointly and severally liable for an amount of Rs.22 cores and odd. The Commissioner is yet to be appointed in this matter to record the evidence and the liabilities are yet to be determined. If ultimately the non-applicant no.1 (deceased) is held to be liable for an amount or the liability is fixed by the Chartered Accountant, then the legal heirs are liable only to the extent of the property which they shall inherit from the deceased. The learned counsel appearing for the applicant has urged that the legal heirs of the non- applicant no.1 (deceased) cannot now be held liable for the alleged act of misfeasance or breach of trust etc. He has relied upon the decision of the Kerla High Court reported in 1988 64 Company Cases 855 Ker. (Official Liquidator, South 3 India Saw Mills P. Ltd. vrs. Ramakrishna Iyer Ramnarayanan and others) to urge that the proceedings cannot be continued against the legal heirs of the ex-Directors. He has also relied upon the decision of the Delhi High Court reported in 1991 (71) Company Cases 101; Security and Finance Pvt. Ltd vrs. B.K.Bedi and others. In the decision of the Kerla High Court cited supra, it was an application filed by the Official Liquidator for continuation of proceedings against the legal heirs in respect of the liabilities of the delinquent Director for the acts of misfeasance. Similar is the case in respect of the decision of the Delhi High Court relied upon by the learned counsel. The proposition cannot be disputed. However, the difference lies in the facts of the case. In the present case, the application is for discharge from the proceedings filed by the legal heirs of the non-applicant no.1 (deceased) ex-Director of the Company. It is not an application by the Official Liquidator for continuing the proceedings against 4 the legal heirs for the acts of misfeasance or breach of trust etc. The legal heirs of the deceased director can always be held liable to the extent of the properties inherited by them from the deceased in view of Section 70 of the Civil Procedure Code. The judgments cited by the learned counsel are, therefore, not applicable to the facts of the present case. In view of above, the application is dismissed. JUDGE Rvjalit