Samir Kumar Ghosh v. Nalanda Ceramic and Industries Limited
2011-03-08
R.R.PRASAD
body2011
DigiLaw.ai
Order Learned counsel for the• petitioner submits that in absence of a Certificate being drawn the Certificate Officer proceeded with the proceeding to realize a sum of Rs. 4,28,247.65 from the company, Nalanda Ceramic and Industries Ltd. on the basis of requisition submitted by Electricity Board. Subsequently the name .of this petitioner, who at one point of time was the Director of Nalanda Ceramic and Industries limited, was furnished at the instance of Company before the Certificate Officer though he had ceased to be the Director w.e.f. 21.9.1981 and only thereafter a notice in terms of Section 7 of the Bihar •and Orissa Public Demand Recovery Act was issued against the petitioner which has been challenged to be bad as admittedly no Certificate had been drawn by the Certificate Officer against the petitioner and that the petitioner at the relevant point of time was not the Director of the said Company. Further if has been sought to be quashed on the ground that winding up proceeding is going on before the Company Court and on account of that the Electricity Board can never proceed to realize the dues from the petitioner in view of the provision as enshrined under Section 446(1) of the Companies Act without leave of the Company. 2. Having heard learned counsel for the parties, it be recorded that admittedly no certificate had ever been drawn against the petitioner rather the sama had been drawn against the Company itself and in that view of the matter notice issued under Section 7 of the Bihar and Orissa Public Demand Recovery Act on 24.4.2003 as contained in Annexure-6 is certainly bad. Apart from that since a winding up proceeding is pending before the Company Court it is not legal on the part of the Board to realize the amount through Certificate proceeding in view of the provision as contained in Section 446(1) of the Company Act without leave of the Company Court and as such issuance of notice under Section 7 of the Bihar and Orissa Public Demand Recovery Act against the petitioner being bad on both the courts (sic-counts?) is set aside. 3. However, before parting with the order, it is recorded that the Electricity Board would be at liberty to take recourse of law available to it for realization of the dues in accordance with law. 4. Accordingly, this writ application is allowed.