OFFICIAL LIQUIDATOR Vs. BANK OF INDIA & ANOTHER

JUDGEMENT

(1.) Instant company application came to be filed assailing orders Ann.A/6 & Ann.A/7 dt.7.10.2005 passed by the Recovery Officer, DRT-I Delhi primarily on the premise that the property in question put to auction by recovery officer was in possession of the official liquidator and without seeking permission of the Company Court auction proceedings was without authority and could not be finalized.

(2.) The Company Court vide interim order dt.8.2.2006 initially stayed auction proceedings and directed the parties to maintain status quo in regard to the subject property and the legal question which emerged for consideration was as to whether application filed u/S.446 and 537 of the Companies Act is maintainable and the official liquidator can be allowed to take recourse of the provisions of the Companies Act where remedy is available to file appeal against the order of the recovery officer, Debt Recovery Tribunal under the Act, 1993 and taking note of the legal issue subjudice before the Apex Court at the relevant of time in B.Shoes Ltd. Vs. Indian Overseas Bank Special Leave to Appeal (Civil) No.3036/2003 wherein their Lordships of the Supreme Court vide order dt.14.11.2003 while granting leave framed the question that "whether the Debt Recovery Tribunal can direct sale of assests of a company which has been wound up and the Official Liquidator is appointed" and taking note thereof, the Company Court decided the application vide order dt.31.7.2006 and it will be appropriate to quote the extract of the operative part of the order ad infra-

(3.) Against the order dt.31.7.2006, the auction purchaser M/s. Pravesh Builder & Developer Pvt. Ltd. preferred a DB Special appeal (Company) No.132/2006 and the Division Bench while setting aside the order dt.31.7.2006 remitted the matter to the Co. Court vide judgment dt.9.5.2012 and it will be appropriate to quote relevant part of the order dt.9.5.2012 which reads ad infra-