IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE A.K.BASHEER & THE HONOURABLE MR. JUSTICE P.Q.BARKATH ALI THURSDAY, THE 12TH AUGUST 2010 / 21ST SRAVANA 1932 Co.Appeal.No. 48 of 2010 --------------------------------------- AGAINST THE JUDGEMENT/ORDER IN CP.21/1997 Dated 05/02/2010 .................... APPELLANT/RESPONDENT: -------------------------------------------- P.A.SAJJAN, PUTHANVEEDU, VELLAKADAPARAMB ROAD, ELAMAKKARA, KOCHI-26. BY ADV. SRI.A.P.SUBHASH RESPONDENT / CLAIMANT: ------------------------------------------- GRAND A ONE FOODS PVT LTD, REP.BY OFFICIAL LIQUIDATOR/SPECIAL OFFICER, HIGH COURT OF KERALA. SRI.K.MONY, SC, OFFICIAL LIQUIDATOR THIS COMPANY APPEAL HAVING COME UP FOR ADMISSION ON 12/08/2010, ALONG WITH COA NO.52 OF 2010, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: A.K.BASHEER & P.Q.BARKATH ALI, JJ. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Co.A.Nos.48 & 52 OF 2010 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 12th day of August 2010 JUDGMENT Basheer, J. These two appeals are being disposed of by this common judgment, since the issue involved in them is common and identical. 2. The orders passed by the learned Company Judge in two Company Claims in a company petition are under challenge in these appeals. 3. M/S Grand A One Foods Private Limited is in liquidation. The official liquidator is in the process of finalizing the liquidation proceedings. The official liquidator filed the two claim petitions referred to above under Section 446 read with Section 458A of the Companies Act, 1956 praying for appropriate orders for recovery of the amount due from the appellants with future interest at the rate of 12% per annum. 4. In the case of the appellant in Co.A.48/2010, the amount due is stated to be Rs.2,11,145/- with interest at the rate of 12% from January 17, 2001. Admittedly, the appellant is the former Managing Director of the Company. In Co.A.52/2010, the amount due from the appellant is found to be Rs.1,37,865 with interest at the rate of 12% from January 17, 2001. Appellant in this case is a former Director of the company. 5. The two appellants contended before the learned Company Judge that no recovery need be effected from them now, since by sale of the immovable property, having an extent of about two acres, will fetch more than Rupees 30 lakhs. The total liability of the company in liquidation is only about 6 lakhs. Therefore huge amount will be available with the official liquidator even after paying off all the liabilities of the company. Co.A.Nos.48 & 52 OF 2010 :: 2 :: 6. But the official liquidator pointed out that out of the two acres of land belonging to the company, 38.450 cents had already been mortgaged by the appellant in 48/2010 to M/S Viswas Chit Funds Private Limited. Subsequently, the said chit company also went into liquidation. He further stated that steps were being taken to redeem the property and sell the same with the permission of the court. But according to the official liquidator, the amount payable to the contributors, (the claimants) need not be put on hold till the sale of the immovable property. The learned Company Judge accepted the above contention raised by the official liquidator. 7. We do not find any illegality or irregularity in the view taken by the learned Judge. It is not disputed by the appellants that they owe the above sums of money to the company in liquidation. Their only contention is that the amounts can be set off from their share that may ultimately come into the hands of the official liquidator by the sale of the asset of the company. The said contention is wholly untenable, as rightly held by the learned Company Judge. However, in the matter of interest, we are satisfied that it will be just and proper if the appellants are directed to pay interest at the rate of 9% instead of 12%. With this modification, the impugned orders are confirmed. Appeals are disposed of in the above terms. A.K.BASHEER, JUDGE P.Q.BARKATH ALI, JUDGE jes