Phukan, J. - (1.) The appellant is a Corporation established under the State Financial Corporations Act, 1951 (for short 'Act of 1951'). Two companies viz. M/s. Nagarjuna Paper Mills and M/s. Chandra Pharmaceuticals Limited were in liquidation and the liquidation proceedings were pending before the learned company Judge of the High Court. The above two companies obtained loans from the appellant and for realisation of dues, the appellant invoked the provisions of Section 29 of Act of 1951. As both the companies were under liquidation, the appellant filed two separate applications under Section 446(1) of the Companies Act read with Sections 29 and 46 of Act of 1951 before learned company Judge of the High Court for staying outside the liquidation proceedings. The learned Judge passed two similar orders in respect of both the companies and granted permission to the appellant to stay outside the liquidation proceedings subject to the following conditions:"1. The petitioner will undertake to discharge its liability due to the workers, if any, under Section 529 (A) of the Companies Act. 2. The petitioner shall inform at least 10 days in advance before a date fixed for receipt of tenders, to the Official Liquidator about the proposed sale of the properties of the company; and 3. The petitioner shall also obtain the permission of the Court before finalising the tenders."
(2.) The appeals filed were dismissed by the Division Bench of the High Court by the impugned judgment and hence these appeals.
(3.) We have heard Mr. Y. Prabhakara Rao, learned counsel for the appellant and Mr. A.D.N. Rao, learned counsel for the respondent.;