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Kothandapani Vs. Somasundaram and anr. - Court Judgment

LegalCrystal Citation
Decided On
Reported in(1892)ILR15Mad97
RespondentSomasundaram and anr.
indian companies act - act vi of 1882, section 177--voluntary liquidation--liability to be sued. - .....costs will be costs in the.....

1. The learned Judges of the Small Cause Court have given no reasons for their decision.

2. The right to sue to recover a debt is in the nature of a common law right, and unless it is taken away either expressly or by necessary implication, it must be treated as subsisting. We are not referred to any Section in the Indian Companies Act under which we can support the decision of the learned Judges. Section 177, which enumerates the consequences of the voluntary winding up of a company, only recognizes the liability of the liquidators to pay the debts of the company and limits the right of creditors to a payment pari passu. It does not absolve the debtors from liability to be sued. The fact that there are liquidators may be material if execution is sought of the decree. We set aside the order and direct that the suit be restored to the file and disposed of in accordance with law. The costs will be costs in the cause.

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