A.P. STATE CONSUMER DISPUTES REDRESSAL COMMISSION
AT HYDERABAD
F.A. 259/2008 against C.C. 44/2004, Dist. Forum, Karimnagar
Between:
1. Bakkashetti Gangamma
W/o. Ramulu, Age: 60 years
Thatipally (V), Jagitial (M)
Karimnagar Dist.
2. J. Mamata, D/o. Gangadhar
Age: 14 Minor,
Rep. by mother J. Gangavva
W/o. Gangadhar
R/o. Potaram (V)
Mallial (M), Karimnagar.
3. Mutyala Mallavva
D/o. Mallesham,
R/o. Potaram (V)
Mallial (M), Karimnagar.
4. Mutyala Narasamma
D/o. N. Lingaiah
R/o. Potaram (V)
Mallial (M), Karimnagar.
5. Mutyala Manjula
D/o. Mallesham
R/o. Potaram (V)
Mallial (M), Karimnagar.
6. Mutyala Padma
D/o. Mallesham
R/o. Potaram (V)
Mallial (M), Karimnagar.
7. Mutyala Mallesham
S/o. N. Lingaiah
R/o. Potaram (V)
Mallial (M), Karimnagar.
8. Mutyala Adi Reddy
S/o. Mallesham
R/o. Potaram (V)
Mallial (M), Karimnagar.
9. Bandari Mallaih
S/o. Rajam,
R/o. Potaram (V)
Mallial (M), Karimnagar.
10. Neerati Bhagyamma
D/o. Gangaram
R/o. Tatipalli (V)
Jagitial (M), Karimnagar.
11. Bolisetti Ganganna
S/o. Syabu,
R/o. Potaram (V)
Mallial (M), Karimnagar.
12. Mutyla Laxmi
W/o. Adi Reddy,
R/o. Potaram (V)
Mallial (M), Karimnagar.
13. Boga Nyva, D/o. Narasa Reddy
Age: 12 years, Minor, Rep. by her father
B. Narasa Reddy, S/o. Narasaiah
R/o. Potaram (V)
Mallial (M), Karimnagar.
Through their GPA Holder
Neerati Gangaram, S/o. Rajanarsu
Age: 60 years,
R/o. Tatipalli (V), Jagitial (M)
Karimnagar Dist. *** Appellants/
Complainants And
Katipalli Narsimha Reddy
S/o. Malla Reddy, Age: 52 years
H.No. 1-4-728, Krishna Nagar
Jagitial, Karimnagar Dist. *** Respondent/
Opposite Party
F.A. 260/2008 against C.C. 84/2005, Dist. Forum, Karimnagar
Between:
Mayadari Gangaiah
S/o. M. Gangaram
R/o. Obulapur (V)
Meellial (M)
Karimnagar Dist. *** Appellant/
Complainant And
M/s. Sri Raja Rajeswari Finance &
Investments Ltd.
Branch Jagitial
Rep. by its Managing Director/
Manager
Katipalli Narasimha Reddy
S/o. Malla Reddy
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist. *** Respondent/
Opposite Party
F.A. 261/2008 against C.C. 85/2005, Dist. Forum, Karimnagar
Between:
Mayadari Gangaram,
S/o. Bimalingam
R/o. Obulapur (V)
Meellial (M)
Karimnagar Dist. *** Appellant/
Complainant And
M/s. Sri Raja Rajeswari Finance &
Investments Ltd.
Branch Jagitial
Rep. by its Managing Director/
Manager
Katipalli Narasimha Reddy
S/o. Malla Reddy
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist. *** Respondent/
Opposite Party
F.A. 262/2008 against C.C. 86/2005, Dist. Forum, Karimnagar
Between:
Palli Gangadhar
S/o. N. Gangaram
R/o. Beemadram (V)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
M/s. Sri Raja Rajeswari Finance &
Investments Ltd.
Branch Jagitial
Rep. by its Managing Director/
Manager
Katipalli Narasimha Reddy
S/o. Malla Reddy
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist. *** Respondent/
Opposite Party
F.A. 263/2008 against C.C. 115/2005, Dist. Forum, Karimnagar
Between:
G. Gangadhar
S/o. Hanumanthu
R/o. Venkatraopet (v)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 264/2008 against C.C. 116/2005, Dist. Forum, Karimnagar
Between:
CH. Laxma Reddy, S/o. Bhumaiah
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 265/2008 against C.C. 118/2005, Dist. Forum, Karimnagar
Between:
P. Sathemma, D/o. Yellaiah
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 266/2008 against C.C. 119/2005, Dist. Forum, Karimnagar
Between:
D. Manemma, D/o. Rajaiah
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 267/2008 against C.C. 120/2005, Dist. Forum, Karimnagar
Between:
E. Laxmi, D/o. Raja Reddy
R/o. Mallaram (V)
Vemulawada (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist.
*** Respondents/
Opposite Parties
F.A. 268/2008 against C.C. 121/2005, Dist. Forum, Karimnagar
Between:
N. Amrutha, W/o. Rami Reddy
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 269/2008 against C.C. 122/2005, Dist. Forum, Karimnagar
Between:
G. Narasiah, S/o. Hanumanthu
R/o. Venkataraopet (V)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 270/2008 against C.C. 123/2005, Dist. Forum, Karimnagar
Between:
P. Mallesham, S/o. Rajamallaiah
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 271/2008 against C.C. 124/2005, Dist. Forum, Karimnagar
Between:
Smt. S. Laxmi, W/o. Late Devaiah
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 272/2008 against C.C. 125/2005, Dist. Forum, Karimnagar
Between:
V. Rajam, S/o. Somaiah
R/o. Venkataraopet (V)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 273/2008 against C.C. 126/2005, Dist. Forum, Karimnagar
Between:
K. Vinoda, W/o. Sekhar Reddy
R/o. Venkataraopet (V)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 274/2008 against C.C. 127/2005, Dist. Forum, Karimnagar
Between:
Smt. M. Vinoda, W/o. Sudhakar Reddy
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 275/2008 against C.C. 128/2005, Dist. Forum, Karimnagar
Between:
N. Rajam, S/o. Rajamallaih
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 276/2008 against C.C. 129/2005, Dist. Forum, Karimnagar
Between:
G. Anandam, S/o. Narasaiah
R/o. Venkataraopet (V)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 277/2008 against C.C. 130/2005, Dist. Forum, Karimnagar
Between:
CH. Bapu Reddy, S/o. Linga Reddy
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 278/2008 against C.C. 131/2005, Dist. Forum, Karimnagar
Between:
Lakma Laxmakka, W/o. Gangarajam
R/o. Kammaripet (V)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 279/2008 against C.C. 132/2005, Dist. Forum, Karimnagar
Between:
T. Bhooma Reddy, S/o. Raja Reddy
Medipalli ( V )
Konaraopet (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 280/2008 against C.C. 133/2005, Dist. Forum, Karimnagar
Between:
K. Rajeswara Reddy, S/o. Sanjeeva Reddy
R/o. Venkataraopet (V)
Medipalli (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
F.A. 281/2008 against C.C. 134/2005, Dist. Forum, Karimnagar
Between:
CH. Linga Reddy, S/o. Raja Reddy
R/o. Sanugula (V)
Chandurthi (M)
Karimnagar Dist. *** Appellant/
Complainant And
1) M/s. Sri Raja Rajeswari Finance &
Investments, Korutla.
Rep. by its Chairman
S. Trilochan Rao, S/o. Gopala Rao
Chairman, SRR Finance, Korutla
R/o. Korutla (M)
Karimnagar Dist.
2) Katipalli Narasimha Reddy
S/o. Malla Reddy
Director, SRR Finance, Korutla
Age: 48 years, R/o. 1-4-128/A
Aravind Nagar, Jagitial (M)
Karimnagar Dist.
3) I. Ramulu, S/o. Hanumandulu
Director, SRR Finance, Korutla
R/o. Kotaram, Kathlapur (M)
Karimnagar Dist. *** Respondents/
Opposite Parties
Counsel for the Appellants: M/s. P. Rajasirpathi Rao
Counsel for the Resps: M/s. V. Gourisankara Rao-
CORAM:
HON’BLE SRI JUSTICE D. APPA RAO, PRESIDENT
&
SRI SYED ABDULLAH, MEMBER
THURSDAY, THE TWENTY FOURTH DAY OF JUNE TWO THOUSAND TEN
Oral Order: (Per Hon’ble Justice D. Appa Rao, President)
****
1) These appeals are preferred by the unsuccessful complainants against the order of the Dist. Forum directing them to approach the Official Liquidator to recover the amount covered under the F.D.Rs . with interest.
2) Though separate orders were passed in each of these appeals filed by appellants, in the light of the fact that a common questions of fact and law arise, we deem it fit that a common order can be passed in these appeals.
3) The case of the complainants in brief is that they had invested the amounts covered under the FDRs with M/s. Sree Raja Rajeswara Finance & Investments Ltd., Jagitial. The opposite party is the Managing Director of the said company collected the amounts promising to pay the amount from the date of maturity. Despite their requests he did not pay the amount, and therefore they filed the complaints for a direction to pay the amount covered under the FDRs together with interest, damages and costs.
4) The respondent resisted the case. The complainants having deposited the amounts with the company did not choose to make it as a party, non-joinder of which will entail dismissal of the complaint. At any rate directors cannot be personally held liable for the amounts payable by the company. The complaint was filed after a lapse of 6 years from the date of maturity. In fact some of the depositors filed company petition No. 100/2002 before the Hon’ble High Court for winding up of the company. By its order Dt. 17.9.2004 the company was wound up and an official liquidator was appointed to settle the claim. The Dist. Forum has no jurisdiction to adjudicate the matter, and therefore he prayed for dismissal of the complaint.
5) The complainants in proof of their case filed their affidavit evidence and got Ex. A1 to A22 marked, while the respondent filed Exs. B1 to B3.
6) The Dist. Forum after considering the fact that the High Court of A.P. in C.P. No. 100 of 2002 passed orders wounding up the company and appointed an Official Liquidator, directed the appellants to approach the Official Liquidator for appropriate remedy. However, an amount of Rs. 1,000/- was awarded towards costs.
7) Aggrieved by the said order, the complainants preferred the appeals contending that the Dist. Forum did not appreciate either the facts or law in correct perspective. The Dist. Forum went wrong in directing them to approach Company Court for adjudication of their dispute, since the provisions of the Consumer Protection Act are beneficiary in nature, it would not offend the proceedings taken before the Company Court.
8) It is an undisputed fact that the complainants invested the amounts covered under the FDRs in Sree Raja Rajeshwara Finance and Investments a company floated by the respondent. They filed consumer complaints against the respondent for refund of the amount which is basically a debt owed by the company in contra distinction to the liability of directors in their individual capacity as such. It is also not in dispute that during the pendency of these proceedings some of the creditors filed company wind up petition before the High Court of A.P. in C.P. No. 100 of 2002 and the High Court by its order Dt. 3.10.2005 allowed the Company Petition. It appointed an official liquidator, and to proceed according to law. It may be recalled herein that Section 446 of the Companies Act postulates as under :
446. Suits stayed on winding up order.
(1) When a winding up order has been made or the Official Liquidator has been appointed as provisional liquidator, no suit or other legal proceeding shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, against the company, except by leave of the court and subject to such terms as the court may impose. (3) Any suit or proceeding by or against the company which is pending in any court other than that in which the winding up of the company is proceedings may, notwithstanding anything contained in any other law for the time being in force, be transferred to and disposed of by that court.
9) In the wake of orders passed by the High Court, the complainants ought to have taken steps to obtain leave as contemplated under the above provisions in order to continue the proceedings in the consumer complaint (C.C) from out of which these appeal arise. As a matter of fact this lapse on the part of the complainants themselves is fatal to the complaints.
10) Learned counsel for the appellants stated that the Official Liquidator who was directed to proceed according to law himself filed a petition to set-aside the order appointing him as Official Liquidator on the ground that the Directors and the Company did not hand over the assets and documents and therefore he could not proceed ahead. He stated these circumstances in order to substantiate his argument that the Dist. Forum can proceed ahead as against the Company and Directors notwithstanding the order passed by the High Court for winding up of the company in question. It is not known as to what happened to the petition filed by the Official Liquidator. As of now, the fact remains that the company was wound up and an Official Liquidator was appointed to proceed according to law.
11) Learned counsel for the complainants relied a decision in State Bank of India Vs. Indian Electric Works of Delhi High Court reported in 1988 – ILR (Del) 2-212, 1989-DL-2-100, to contend that when the complainant had sought several reliefs one against the company and another against the Directors the leave which was mandatory u/s 446 of the Companies Act need not be taken and the complaints were maintainable. A perusal of the decision cited above shows that when personal liability of the some of the partners was sought, the High Court in that context opined that when different reliefs are sought one against the firm and another against partners in their individual capacity leave need not be taken as contemplated u/s 446 of the Companies Act. Since in that case the relief sought for was not against the firm it opined that there was no need for the complainant to take leave as required u/s 446 of the Companies Act. However, in this case the respondent is a body incorporate registered under the Companies Act. The question of taking separate reliefs against the Directors will not arise.
12) In any view of the matter Directors cannot be fastened with liability in respect of companies debts in the absence of any proof that they were also personally liable under the circumstances relating to the debt. At any rate in the present case there is no such evidence. So the whole complaint has to be construed as against the company and nothing to do with the Directors vis-à-vis personal liability and in this view of the matter the mandate contained in Section 446 of the Companies Act acquires any amount of importance, and it cannot be ignored.
13) In the result the appeals are dismissed but without costs.
1) _______________________________
PRESIDENT
2) ________________________________
MEMBER
Dt. 24. 06 2010.
*pnr
