THE OFFICIAL LIQUIDATOR versus PARTHASARATHI SINHA & OTHERS

THE OFFICIAL LIQUIDATOR versus PARTHASARATHI SINHA & OTHERS

Misfeasance proceedings initiated under section 543 of the Companies Act, 1956 against a director can be continued after his death against his legal representatives, and once liability is declared, the amount due can be realised from the estate in the hands of legal representatives under section 634 of the Act and section 50 of the Code of Civil Procedure.

Parties
Appellant: The Official Liquidator; Respondents: Parthasarathi Sinha & Others
Jurisdiction
India
Judgment Date
17 December 1982
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 1st August, 1975 of the Calcutta High Court
Outcome
Appeal allowed
Legal Topics
Misfeasance Proceedings, Liability of Directors, Legal Representatives, Execution of Decrees
Company Law Misfeasance Proceedings Liability of Directors Legal Representatives Execution of Decrees

Case Brief

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Parties

The Official Liquidator

Appellant

Parthasarathi Sinha & Others

Respondents

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 1st August, 1975 of the Calcutta High Court

Legal Issues

  1. 1 Whether proceedings under section 543 of the Companies Act, 1956 against a director can be continued after his death against his legal representatives
  2. 2 Whether any amount declared to be due in such proceedings can be realised from the estate of the deceased in the hands of his legal representatives

Ratio Decidendi

Misfeasance proceedings initiated under section 543 of the Companies Act, 1956 against a director can be continued after his death against his legal representatives, and once liability is declared, the amount due can be realised from the estate in the hands of legal representatives under section 634 of the Act and section 50 of the Code of Civil Procedure.

Court Disposition

Appeal allowed

Orders

  • Judgment of the Division Bench of the Calcutta High Court set aside
  • Order of the learned Company Judge restored