Proceedings u/s. 543 cannot be initiated merely based on realizable value of assets

HIGH COURT OF KARNATAKA Official Liquidator of Mandya National Paper Mills Ltd. (In Liquidation) v/s. S.K. Sengupta CO. APPLICATION NO. 971 OF 2005 CO. PETITION NO. 112 OF 1994 MARCH 8, 2012 ORDER 1. The instant application is filed by the Official Liquidator under Section 543(1) of the Companies Act, 1956 R/w Rule 9 and 260 of the Companies (Court) Rules, 1959. The application is filed on behalf of the company in liquidation against the erstwhile Directors of the said Company, alleging misfeasance and in that context to direct respondent Nos. 1 and 3 to jointly or severally p...