TaxTMI 
TaxTMI 
1993 (12) TMI 200
X X X X Extracts X X X X
X X X X Extracts X X X X
....functioning and holding himself out to be the managing director or director of defendant No. 1-company. The trial judge also issued an injunction against the company from permitting defendant No. 2. to act as managing director or director and defendant No. 2 was further restrained from receiving any salary, perquisites, benefits or privileges from the company as managing director or director. The decision of the trial judge is reported in Jayesh Ramniklal Doshi v. Carbon Corporation Ltd. [1992] MLJ 1316 ; [1993] 76 Comp. Cas. 748 (Bom). We are unable to agree with the view taken by the learned judge and the impugned order is required to be set aside. Advance Paints Private Limited instituted Summary Suit No. 2409 of 1985 against the appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uly authorised attorney. The balance amount of rupees one lakh and fifty thousand would be paid to respondent No. 1 by September 30, 1990. On this balance amount of Rs. 1,50,000 interest at the rate of 12 per cent, per annum shall be paid from February 1, 1988, to September 30, 1990, or earlier date if the amount is paid. In case of default of payment of the sum of rupees one lakh and fifty thousand and the interest due thereon as aforesaid, respondent No. 1 will be at liberty to initiate and revive the insolvency proceedings against the appellant. In the meantime, the insolvency proceedings shall remain stayed. On payment of the aforesaid money the insolvency proceedings will stand discharged. With these observations, the civil appeal i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....equence that during the interregnum, i.e., after expiry of seven days from the dismissal of the appeal by the High Court and the final order of the Supreme Court, the appellant should be treated as being an insolvent. After the institution of the suit, the plaintiff took out Notice of Motion No. 1802 of 1991. seeking interim relief of injunction restraining the appellant from holding himself out or performing any act, function or duty as director or managing director and also from receiving any salary, perquisites, benefits or privileges from the company in that capacity. The motion was resisted by the appellant by pointing out that the order of adjudication stands wiped out in view of the decision of the Supreme Court and the claim of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stinguished from the expression "insolvent" has gone unnoticed, says Shri Makhija, by the trial judge. We find considerable merit in the submission of learned counsel. The plain reading of the order of the Supreme Court leaves no manner of doubt that the following sentence was clearly misunderstood by the learned trial judge: "On payment of the aforesaid money, the insolvency proceedings will stand discharged." It is obvious that the Supreme Court provided that the order of adjudication passed by the trial judge and confirmed by the appeal court will stand set aside on payment of the amount as directed by the Supreme Court. The Supreme Court was not contemplating passing an order of discharge as prescribed under section 38 of the Act.....