1984 (1) TMI 236

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....rges in respect of the loans advanced by M/s. Shakthi Beneficial Corporation to the company in liquidation. The principal amount advanced consisted of two loans of Rs. 2,000 each granted against promissory notes executed on December 18, 1975, and February 26, 1976. The demand made by the official liquidator by his notice dated December 15, 1979, did not meet with any success. Therefore, the application was filed. Respondent has entered appearance through counsel. But, on November 10, 1983, none appeared for the respondent and in that petition respondent was placed ex parte. However, the court recorded that the claimant must prove that the loans were not barred by the law of limitation. In that circumstance, on November 23, 1983, evidence....

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.... No explanation is forthcoming as to why it was not presented soon thereafter. In these circumstances, I have declined to entertain the application filed in court today as not being in accordance with the procedure prescribed by law. Exhibit P-1 is said to be the ledger maintained by the company in liquidation which came to the hands of the official liquidator after the winding-up order was passed when he took possession of the books and records of the company in liquidation. Ex. P-1(a) is the folio relating to respondent, G. Balasubramanyam. In that, it is seen that on December 18, 1975, and on February 26, 1976, Rs. 2,000 on each occasion has been debited to his account. There are several entries of credit also, but they have been canc....

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....the loan applications. These clearly establish that the respondent had transaction with the company in liquidation and borrowed the said sums and has failed to pay the principal as well as the interest accrued except the amount given as deduction by the official liquidator. At an earlier stage it was, however, argued by Sri Narayanappa, learned counsel for the respondent, that the claim was barred by limitation. Ex. P-6, which is written some time after April 11, 1978, the date on which the company in liquidation lodged a police complaint with the Yeshwanthpur Police Station, constitutes acknowledgment of the liability by the respondent in writing. Having regard to the unfortunate position in which the respondent is placed by being pl....