THE OFFICIAL LIQUIDATOR vs PARTHASARATHI SINHA & OTHERS

The Supreme Court held that the liability under Section 543 of the Companies Act, 1956 for misfeasance does not abate upon the death of the wrongdoer. The Court clarified that the Official Liquidator can enforce the liability against the legal representatives of the deceased director, as the declaration of liability is akin to a decree and can be executed under Section 634 of the Act. The Court overruled the High Court's decision which had followed Official Liquidator v. P.A. Tendolkar, stating that the earlier ruling did not consider the implications of Section 634 and the applicability of the Code of Civil Procedure in such cases.