Company Law

Ramya Housing Ltd. vs R. Amrith 

Statement of affairs to be made to OL: Failure to file statemet of affairs - Retirement of ex-director by rotation in 1994, Non-involvement in affairs of company from 1994 to 1999, Application under s.454 dismissed, Ex-director discharged 

The OL had called upon the respondents to file statement of affairs. On failure to comply with demand, the OL filed an application under s.454(5) and s.454(5A) of the Companies Act 1956. Two of the three respondents died and the second respondent contended that by rotation in the AGM of the company in liquidation held in 1994 he had retired as a director. The high court, noting that between 1997 and 1998 the second respondent was in jail in connection with the affairs of the company, held that he was not involved in the management, administration, business and affairs of the company in liquidation from 1994 to 1999 and he did not have access to the books of the company during that period. Therefore, the question of him filing statement of affairs did not arise. The OL’s application was rejected and the second respondent was discharged