THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.593 of 2011 ORDER: This Company application has been taken out by the Official Liquidator representing M/s Targof Pure Drugs Limited (in Liquidation) under Section 446(2)(b) of the Companies Act, 1956 r/w Rules 9 and 11(b) of the Companies (Court) Rules, 1959 seeking a decree against the respondent for a sum of Rs.18,706/- along with interest at 12% per annum with effect from 09.10.2004 till the date of realization. This Court by an order dated 19.04.2007 made in Company Petition No.164 of 2004 directed for winding up of M/s Targof Pure Drugs Limited and appointed the Official Liquidator attached to this Court as liquidator of the said company. The company in liquidation manufactured and supplied formulations and bulk drugs to various traders during the course of its business. As per the information available in the debtors ledger for the year 2004-05, the company in liquidation supplied drugs to the respondent vide invoice No.992567 dated 09.10.2004. Respondent herein paid an amount of Rs.40,000/- to the company in liquidation by way of demand draft bearing No.073239 dated 29.09.2004. The respondent herein is liable to pay an amount of Rs.18,706/- as on 09.10.2004 to the company in liquidation. The Official Liquidator issued a notice dated 06.12.2007 calling upon the respondent to pay Rs.18,706/- which was shown as due in the list of trade debtors forming part of statement of affairs. The notice sent to the respondent returned unserved with an endorsement ‘not found/not known’. The respondent addressed a letter dated 12.04.2011 to the Official Liquidator stating that he was not the proprietor of M/s Susan Pharmaceuticals and that he was working partner of the said firm along with five others. Hence, this application filed by the Official Liquidator seeking the relief stated supra. Notice to the respondent came to be ordered on 14.06.2011. Despite service of notice, the respondent did not choose to enter appearance either in person or through a counsel. The respondent seems to have addressed a letter dated 02.07.2011 to the Official Liquidator admitting the liability and seeking for 10 equal instalments for discharging the liability. Applicant placed on record affidavit of R.Ramakrishna Reddy in lieu of chief-examination. 25 documents have been placed on record and they are exhibited as A.1 to A.25. Heard the learned counsel appearing for the applicant and perused the affidavit of PW.1 and Exs.A.1 to A.25. As per Ex.A.1 certified true copy of page No.91 of debtors ledger for the year 2004-05, the respondent has to pay Rs.18,706/-. The respondent under Ex.A.24 affidavit dated 02.07.2011 admitted the liability and sought for 10 easy instalments. Para 5 of the reply, which has been exhibited as Ex.A.24 reads as hereunder: “This respondent further prays that as the business of the respondent having been closed for a long period and as the other partners are not in touch with this respondent and as such this respondent unable to receive earlier intimation from the applicant/Official Liquidator of the Hon’ble High Court, Hyderabad and the non performance of direction on the part of this respondent be condoned and no costs or other penalty be imposed upon the respondent as the respondent having no latches on his part. In view of the facts and circumstances, this respondent most fervently prays: a) to allow this respondent to pay the principal balance money a sum of Rs.18,706/- by ten easy instalments; b) to exempt the entire interest upon the principal balance amount; c) to condone the delay so caused in payment of balance amount due to closer of respondent business Medicine shop; d) not to impose any further costs towards this respondent for the interest of justice and /or pass such further order or orders as your Hon’ble Court may deem fit and proper”. The evidence of PW.1 and Exs.A.1 to A.25 substantiate the claim of the applicant against the respondent. Accordingly, the company Application is allowed granting a decree for a sum of 18,706/- in favour of the applicant against the respondent. The decreed amount shall carry interest at 12% per annum from 09.10.2004 to this day and at 6% per annum from this day till the date of realisation. The respondent is permitted to pay the amount within six months in two equal instalments. The first instalment is to be paid on or before 12.10.2011 and the second instalment on or before 12.01.2012. In default of payment of the first instalment, the applicant is at liberty to recover the entire amount. _____________________ B.SESHASAYANA REDDY, J Dt.12th July, 2011 PNV