- 1 - HC-KAR NC: 2025:KHC:43511 CA No. 703 of 2007 IN COP NO. 174 OF 1998, 233 OF 1999 C/W 148 OF 1999 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MS. JUSTICE JYOTI M COMPANY APPLICATION NO. 703 OF 2007 IN COMPANY PETITION NO. 174 OF 1998, 233 OF 1999 C/W 148 OF 1999 BETWEEN: OFFICIAL LIQUIDATOR OF M/S. BLUE STREET FASHIONS PRIVATE LIMITED (IN LIQN.), HIGH COURT OF KARNATAKA, 4TH FLOOR, D AND F WING, KENDRIYA SADAN, KORAMANGALA, BENGALURU - 560034. …APPLICANT (BY SRI. SHRISHAIL NAVALGUND, ADVOCATE FOR OL) AND: 1. SRI. PRAKASH CHAND, NO.108, 7TH MAIN, II BLOCK, JAYANAGAR, BENGALURU -560011. 2. SRI. DEEPAK SHARMA, AS 2, SONA APARTMENTS, ATTIGUPPE, VIJAYANAGAR 2ND STAGE, BENGALURU -560040. 3. SRI. VIMAL CHAND, NO.108, 7TH MAIN, II BLOCK, JAYANAGAR, BENGALURU -560011. …RESPONDENTS (V/O. DATED 16.09.2021, R1 - SERVED AND UNREPRESENTED; V/O. DATED 12.08.2021, R2 - SERVED AND UNREPRESENTED; R3 - SERVED AND UNREPRESENTED) Digitally signed by THEJAS KUMAR N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:43511 CA No. 703 of 2007 IN COP NO. 174 OF 1998, 233 OF 1999 C/W 148 OF 1999 THIS COMPANY APPLICATION IS FILED UNDER SECTION 543(1) OF THE COMPANIES ACT, 1956 READ WITH RULES 260 OF THE COMPANIES (COURT) RULES, 1959. THIS COMPANY APPLICATION IS LISTED FOR ARGUMENTS, THIS DAY AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Shrishail Navalgund., counsel for the Official Liquidator has appeared in person. 2. The petition was listed on 23.10.2025, on that day, in the cause list, it was mentioned as 'Deepak Sharma for R2' and there was no representation on behalf of respondent No.2. Because of that note made in the case list that 'Deepak Sharma for R2', for appearance of counsel for respondent No.2, the application was ordered to be listed on 30.10.2025. The Official of the Registry concerned submits that the application was listed on 12.08.2021, on that day, counsel for respondent No.2 was permitted to retire from the case and office was directed to print the name of respondent No.2 in the cause list. However, due to inadvertence in the cause list dated 23.10.2025, it was wrongly mentioned as 'Deepak Sharma for R2' instead of 'R2 - Deepak Sharma'. - 3 - HC-KAR NC: 2025:KHC:43511 CA No. 703 of 2007 IN COP NO. 174 OF 1998, 233 OF 1999 C/W 148 OF 1999 The application is listed today. In the cause list, it is correctly mentioned as 'R2 - Deepak Sharma'. 3. As could be seen from the daily order sheet, the application was listed on 12.08.2021, on that day, counsel for respondent No.2 was permitted to retire from the case and office was directed to print the name of respondent No.2 in the cause list. Similarly, the application was listed on 16.09.2021, on that day, counsel for respondent No.1 was permitted to retire from the case and office was directed to print the name of respondent No.1 in the cause list. Respondent No.3 is served and unrepresented. There is no representation on behalf of the respondents. They have neither engaged the services of an advocate nor conducted the case as a party in person. 4. The captioned Company Application is filed to recover the following amounts from the Ex-Directors of the company namely M/s. Blue Street Fashions Private Limited: i. Rs.1,47,47,869/- with interest @ 18% per annum. - 4 - HC-KAR NC: 2025:KHC:43511 CA No. 703 of 2007 IN COP NO. 174 OF 1998, 233 OF 1999 C/W 148 OF 1999 ii. Rs.1,16,11,412/- with interest @ 18% per annum. iii. Rs.17,425/- with interest @ 18% per annum. iv. Rs.17,62,494/- with interest @ 18% per annum. v. Rs.9,06,490/- with interest @ 18% per annum. 5. M/s. Blue Street Fashions Private Limited was ordered to be wound up by an order dated 03.07.2002. Subsequent to the said order, after following the procedure relating to the publication of the notice, the Official Liquidator claims to have taken charge of the available assets of the Company on different dates. Thereafter, on verifying the records pertaining to the company, the Official Liquidator has filed this application seeking recovery of the aforesaid amounts on the premise that there is misfeasance on the part of the Directors who refused to handover the assets of the Company. 6. The respondents are served and unrepresented. The evidence was recorded. One witness is examined on behalf of the applicant as PW1 and marked Statement of Affairs filed - 5 - HC-KAR NC: 2025:KHC:43511 CA No. 703 of 2007 IN COP NO. 174 OF 1998, 233 OF 1999 C/W 148 OF 1999 by Prakash Chand and Deepak Sharma (R1 and R2) as Ex.P.1 and P2. No evidence was adduced on behalf of the respondents. As already noted above, in support of their claim, the respondents have not adduced evidence. Hence, nothing is forthcoming to disbelieve the inference emanating from Ex.P.1 and Ex.P.2, the documents maintained by the erstwhile company in the normal course of its business. Under these circumstances, this Court is of the view that the application is to be allowed. Hence, the following : ORDER The Company Application is allowed in part. The respondents are jointly and severally are liable to pay a sum of Rs.2,90,45,690/- (Rupees Two Crores Ninety Lakh Forty Five Thousand Six Hundred and Ninety only) along with interest @ 8% per annum from the date of application till its payment. SD/- (JYOTI M) JUDGE TKN List No.: 1 Sl No.: 36