Madras High Court
M/S. Twenty First Century Management vs A. Puttaswamy on 8 December, 2014
Author: N. Kirubakaran
Bench: N. Kirubakaran
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 08.12.2014 CORAM THE HONOURABLE MR. JUSTICE N. KIRUBAKARAN C.M.A. Nos. 3152 to 3155 of 2006 & M.P. Nos. 1 of 2006 M/s. Twenty First Century Management Services Limited, No. 158, Eldams Road, Teynampet, Chennai 600 018. ..Appellant in all the appeals Vs. A. Puttaswamy ..Respondent in CMA 3152/2006 Master Shreyas (minor) rep. By Guardian A. Puttasamy ..Respondent in CMA 3153/2006 Miss. Siri (minor) rep. By Guardian A. Puttasamy ..Respondent in CMA 3154/2006 A. Parvathama ..Respondent in CMA 3155/2006 Prayer: Civil Miscellaneous Appeals as against the order dated 31.05.2006 in Company Application Nos. 37634A/SRB/2006, 38/634A/SRB/2006, 39/634A/SRB/2006 & 40/634A/SRB/2006 respectively passed by the Company law Board, Southern Region Bench at Chennai. For Appellant :: Mr.G. Suryanarayanan For Respondents :: No appearance J U D G M E N T
The appeals have been preferred against the order dated 31.05.2006 passed by the Company Law Board under Section 634A of the Companies Act, 1956.
2. Originally, many depositors complained to the Company Law Board that the deposits collected by the appellant Company were not returned on maturity along with interest. Therefore, a Scheme of Settlement was arrived at before the Company Law Board by which the deposited amounts along with interest were to be repaid by the appellant Company. Since the deposited amounts along with interest, as per the Scheme of Settlement, approved by the Company Law Board, were not paid, the respondents filed applications under Section 634A of the Companies Act, 1956. On enquiry, the Board found that the Appellant Company did not comply with the Scheme of Settlement approved by the Company Law Board and disposed of the applications observing as hereunder:
I have considered the submissions made on behalf of the respondent Company as well as the applicants. The admitted position is that the Company failed to settle the interest amount and thus not complied with the order of the CLB and the Company has not disputed the interest amount claimed by the applicants. The payments made towards principal amount by the Company and the balance amount due to the applicants are furnished in the Annexure. In the circumstances, the Bench Officer will forward a copy of the order to the appropriate Court at Chennai, along with the Certificate of non-satisfaction of the order for appropriate action by the applicants.
Aggrieved over the same, the appellant is before this Court.
3. Mr.G. Suryanarayanan, learned counsel for the appellant would submit that the claimants already approached the Appellant company and got the maturity amount along with interest. It is also admitted in the applications itself. According to the learned counsel, they have drawn more than what they are entitled to. Apart from that, he would submit that, as per Section 63 of the Contracts Act, the respondents already received the money and they are, therefore, bound by privity of contract. Hence, the order under challenge is liable to be set aside.
4. Though the respondents/claimants have been served with notice and their names also appear in the cause list, no one has entered appearance on their behalf. Therefore, this Court proceeds to decide the matter on merits.
N. KIRUBAKARAN,J.
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5. A perusal of the records would reveal that the claim of the respondents was not settled. Therefore, they approached the Company Law Board under Section 634A of the Companies Act, 1956. Even in paragraph No.3 of the award, it has been stated that the admitted position is that the Company failed to settle the entire amount and thus, not complied with the order of the Company Law Board and that the Company is not disputing the interest amount claimed by the claimants. When such an observation has been made, based on records, that the interest amount was not paid, the appellant is bound to pay the amount. The annexure given along with the order would show that the appellant has to pay a sum of Rs.2,16,884/-. The said amount is required to be paid as per the Scheme of Settlement. Since the amount is due from the date of the order, i.e.,31.05.2006, the same is directed to be paid along with 6% interest per annum.
6. With the above direction, the appeals are dismissed. No costs. Connected M.P.s are closed.
08.12.2014 nv C.M.A.Nos.3152 to 3155 of 2006