- (1.) J.:- This appeal is filed against the judgment and order dated 24-12-1996 passed by the Division Bench of the Calcutta High Court dismissing the Appeal No. GA 708 of 1996 arising out of Company Petition No. 316 of 1981 whereby the learned single Judge had confirmed the auction sale of the property of Messrs.. Kolay Biscuits Company Private Limited - Company under liquidation.
(2.) In the present case, it is admitted fact that on 9th July 1965 Messrs. Kolay Biscuits Company Private Limited created a mortgage of its land and building in favour of Union Bank of India for the loan granted in its favour. The factory of the company was closed down in 1980. On 20th March 1991 under the provisions of the Sick Industrial Companies Act (SICA), the company was declared as sick unit by the Board of Industrial and Financial Reconstruction (for short "B.I.F.R.") and thereafter application under the said Act was rejected by the Board. Appeal filed before the A.I.F.R. was also dismissed. It is the contention of the Bank that on 30th March, 1981, the borrowings by the Company increased to about Rs. 3 Crores and Company executed four balance confirmations in respect of the dues in various accounts. The bank also filed a title mortgage suit No. 103/1992 before the Assistant District Judge, Sealdah against the Company and five guarantors for recovering Rs. 4,11,21,411/- along with interest after obtaining leave by the Company Judge under Section 446 of the Companies Act. By order dated 19th August, 1991 the Company Judge issued directions for winding up of the Company and appointing official liquidator to take over assets. On 16th February, 1996, the Company Judge appointed Mr. Pranoj Roy Chowdhary of M/s. Chowdhary Associates as a valuer with a direction to submit a report within six weeks from the date. Official Liquidator has stated that he informed the appellant Bank about the said order by letter dated 29th February, 1998. Thereafter the matter was placed before the Company Judge on 21st June, 1996 and on the same date Company Judge passed an order fixing date of sale of Company's assets as 2nd August 1996 and directed the official liquidator to make advertisement for notice of sale of assets of the Company in newspapers, namely, the Statesman, Dainik Bishwamitra and Anand Bazaar Patrika inviting applications for purchase of the property on "as is where is basis" with a direction that purchaser will be bound to deposit 20 per cent of the tender amount along with the tender by Bank draft or bankers cheque or pay order.
(3.) On 2nd August, 1996, one Advocate Mr. Dutta moved an application stating that nearly 1200 workmen would be affected if the sale does not take place as a going concern and the workmen are not re-employed. The Company Judge observed: "the fate of so many workmen nearly 1200 in number with their families depending upon them cannot be ignored by the Court." ;