https://www.taxtmi.com/caselaws?id=109655 Misfeasance proceedings under section 543 of the Companies Act, 1956 are compensatory and do not create a fresh liability; they do not abate on the death of a director, and the Official Liquidator may continue them against the legal representatives. The heirs' liability is limited to the extent of the estate of the deceased in their hands. Whether any property devolved on the heirs or was benefited by them must be proved by evidence and cannot be determined merely on affidavits at the substitution stage. Delay in bringing the legal representatives on record does not defeat substitution where there is no abatement. en-us Tue, 29 Jul 2003 00:00:00 +0530 Wed, 11 Apr 2012 12:02:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109655 Misfeasance proceedings under section 543 of the Companies Act, 1956 are compensatory and do not create a fresh liability; they do not abate on the death of a director, and the Official Liquidator may continue them against the legal representatives. The heirs' liability is limited to the extent of the estate of the deceased in their hands. Whether any property devolved on the heirs or was benefited by them must be proved by evidence and cannot be determined merely on affidavits at the substitution stage. Delay in bringing the legal representatives on record does not defeat substitution where there is no abatement. Case-Laws Companies Law Tue, 29 Jul 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109655