Rashmi Metaliks Limited vs Official Liquidator, High Court, Calcutta

The applicant, being a creditor of the company (in liquidation), claims interest at 4% per annum together with interest from the Official Liquidator and

for a communication dated 16th June, 2021 of the Official Liquidator by which the applicant’s claim for interest was rejected and for setting aside

the rejection of the applicant’s claim on account of interest.

According to learned counsel appearing for the applicant, there is no contractual rate of interest, which was fixed under the transaction for supply of

goods to the Company (in liquidation). Learned counsel appearing for the applicant further relies on Rule 156 of The Companies (Court) Rules, 1959

under which in the absence of any rate of interest fixed, rate not exceeding four per cent per annum can be fixed upto that date from the time when

the debt or sum became payable. Counsel places a communication from the Official Liquidator dated 19th February, 2021 which allowed the principal

sum of Rs.36,56,806/- to the applicant on a “NOTICE OF ADMISSION OF PROOF OF DEBTâ€. The claim for interest on such claim, which

had been made at 24% was rejected on the same date. The applicant thereafter sent a lawyer’s notice to the Official Liquidator on 5th March,

2021 claiming interest at 4% pre annum under Rule 156 of the 1959 Rules and claimed a sum of Rs.2,74,511/- from 19th February, 2013 to 5th

August, 2015: on 5th March, 2021 also being the date on which the Company was wound up. Counsel submits that the Company (in liquidation) had

earlier been put to notice by way of a letter dated 28th December, 2012 of the applicant’s claim on account of interest on the outstanding amount

at the rate of 24% per annum until realization. According to counsel, this notice would show that the Company (in liquidation) was all along aware that

it was liable to pay interest to the applicant on the principal amount for goods sold and delivered by the applicant to the company (in liquidation),

Learned counsel appearing for the Official Liquidator stresses on the point that the applicant has not been able to show any contractual rate of interest

by reason of which the claim on interest was rejected on 19th February, 2021. Counsel joins issue with the interpretation given to Rule 156 to submit

that the said Rule only refers to the rate and not about any claim on interest which can be made in the absence of a contractual rate agreed between

the parties.

Upon hearing learned counsel, this Court is of the view that a claim on interest is generally made by a party to make good the notional loss suffered by

that party for the period during which the party was deprived of payment for goods sold and delivered or services rendered which that party was

satisfactorily able to prove. In the present case, the claim of the applicant on account of the principal sum has been allowed by the Official Liquidator

thereby proving that the Official Liquidator accepted that applicant had a bonafide claim against the Company (in liquidation). Denial of the

applicant’s claim on account of interest on the ground that the applicant could not show a statutory rate of interest cannot be accepted for the

aforesaid reason. Although the applicant made its claim to the Company (in liquidation) on 28th December, 2012, the claim was finally allowed on 19th

February, 2021 after nine years. Even if 2014 when the applicant received part payment of its dues is taken as the relevant date, the period the

applicant remain unpaid for seven years. Hence, there can be no legitimate basis for the Official Liquidator rejecting the applicant’s claim on

account of interest.

Rule 156 of The Companies (Court) Rules, 1959 makes it clear that a creditor would be entitled to a rate of interest not exceeding 4% per annum in

the absence of the written instrument. The interest of a seller to claim interest is also found in Section 34 of The Code of Civil Procedure, 1908 which

provides for payment of interest on the principal sum in a decree for payment of money.

In view of the above reasons, CA/12/2021 is allowed in terms of prayers (a) and (b). The applicant would be entitled to an amount by way of interest

which could be calculated at 4% from the period on which the amount became payable to the date when the Company was wound up, i.e., 5th

August, 2015 (ref. Rule 154 of The Companies (Court) Rules).

The Official Liquidator is also directed to take appropriate steps for distribution of the assets of the company (in liquidation) among the creditors in a

time bound manner.

CA/12/2021 is disposed of in terms of the above.