PREMANAND R. SHENOY versus CUSTODIAN AND ORS.

PREMANAND R. SHENOY versus CUSTODIAN AND ORS.

Documents and correspondence establish that appellant was aware of and benefited from the vehicle purchased in his name and financed by the notified company; hence he is liable to repay the amount. However, as appellant voluntarily brought the matter to the Custodian's notice, interest is modified from 18% to 9% per annum.

Parties
Appellant: Premanand R. Shenoy; Respondent: Custodian; Respondent: M/s. Fair Growth Financial Services Limited
Jurisdiction
India
Judgment Date
26 May 2009
Procedural Posture
Civil Appeal / Disposal of Appeal by Supreme Court Against Order of Special Court Under the Special Court (trial of Offences Relating to Transactions in Securities) Act, 1992
Outcome
Appeal disposed of with modification regarding interest; order of Special Court otherwise upheld.
Legal Topics
Director's Liability, Hire Purchase Finance, Assets of Notified Person, Interest Modification by Appellate Court
Securities Law Corporate Law Special Courts Director's Liability Hire Purchase Finance Assets of Notified Person Interest Modification by Appellate Court

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Parties

Premanand R. Shenoy

Appellant

Custodian

Respondent

M/s. Fair Growth Financial Services Limited

Respondent

Procedural Posture

Civil Appeal / Disposal of Appeal by Supreme Court Against Order of Special Court Under the Special Court (trial of Offences Relating to Transactions in Securities) Act, 1992

Legal Issues

  1. 1 Whether appellant as director is liable to repay amount financed by notified company for purchase of vehicle in his name
  2. 2 Whether interest awarded by Special Court should be modified

Ratio Decidendi

Documents and correspondence establish that appellant was aware of and benefited from the vehicle purchased in his name and financed by the notified company; hence he is liable to repay the amount. However, as appellant voluntarily brought the matter to the Custodian's notice, interest is modified from 18% to 9% per annum.

Court Disposition

Appeal disposed of with modification regarding interest; order of Special Court otherwise upheld.

Orders

  • Order of Special Court directing payment of principal amount of Rs. 2,83,192/- is upheld.
  • Interest modified from 18% p.a. to 9% p.a. from 22.7.1991 to 29.2.1992.