The words/expression “the amount due” in Section 250 of the Companies Act, 2013 would only mean a quantified amount of money which is legally recoverable by the company from its debtors, it is not restricted to admitted debt or a crystalised amount due – A.B. Creations and Anr. Vs. Bhan Textiles Pvt. Ltd. – Delhi High Court

Hon’ble Delhi High Court held that:

(i) Even if the name of a company is struck off from the register, it remains operational in so far as it can pursue legal remedies for realisation of the ‘dues’ of the said company against its debtors, which have either crystalised or remain uncrystallised, arising from any liability or obligation of its debtors to the company, but even the creditors can pursue legal remedies against the said company for the payment and discharge of its liabilities or obligations arising from any contract or statutory implications.
(ii) Mere striking-off of the name of the respondent-company from the register by the Registrar of Companies does not automatically invalidate or renders flawed the civil suit filed by the respondent/plaintiff.

The words/expression “the amount due” in Section 250 of the Companies Act, 2013 would only mean a quantified amount of money which is legally recoverable by the company from its debtors, it is not restricted to admitted debt or a crystalised amount due – A.B. Creations and Anr. Vs. Bhan Textiles Pvt. Ltd. – Delhi High Court Read Post »