NISHANT
Merely because the period fixed for liquidation is over, the proceedings for recovery of dues do not stand closed
NISHANT MEHROTRA 3 Sep 2019

Merely because the period fixed for liquidation is over, the proceedings for recovery of dues do not stand closed

Supreme Court :: Merely because the period fixed for liquidation is over, the proceedings for recovery of dues do not stand closed. Held :: On the termination of the liquidation proceedings, liability of the members for the debts taken by them does not come to an end. There is no such provision in the Act providing once winding up period is over, the liability of the members for loans obtained by them which is in their hands, and for which recovery proceedings are pending shall come to an end. No automatic termination of recovery proceedings against the members is contemplated. On the other hand, on completion of the period fixed to liquidate the society, final report has to be submitted as to the amount standing to the credit of the society in liquidation after paying off its liabilities including the share or interest of members. Thus, even in the case of liquidation the accountability remains towards surplus and liabilities do not come to an end. Even if the period fixed for liquidation of society is over, that does not terminate the proceedings for recovery which have been initiated and appeals are pending. Case: Goa State Cooperative Bank v. Krishna Nath A.

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Anuj Malhotra  5 Sep 2019 7:33pm
Please care to explain what this means in lay man's terms ?? can we still go to NCLT to recover dues if the time is over ?
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