B. P. Jeevan Reddy, J. - (1.) Heard the counsel for the parties. Leave granted in both the S. L. Ps. We shall first deal with the appeal arising from S.L.P. (C) No. 5377/92.
(2.) The appeal is directed against the order dated 4-3-1992 passed by a Division Bench of the Calcutta High Court modifying its earlier order of November 13, 1990. The controversy in this appeal pertains to the terms of sale of the assets of a Company in liquidation. A few facts are necessary to be stated to appreciate the controversy.
(3.) Neptune Paper Mills (N.P.M.) was directed to be wound-up by the Company Court on August 4, 1987. The Official Liquidator took possession of the assets of the company under the orders of the Court, N.P.M. had borrowed huge amounts from several financial institutions including Industrial Finance Corporation of India, I.C.I.C.I., W.B.I.D.C. and I.D.B.I. on security of its assets. In view of the default committed by it in repayment, the financial institutions (F. Is.) recalled their loans in April, 1988 with the result all the loans in their entirety became due at once. On August 8, 1988 the F.Is. were granted leave to file a suit under S. 446 of the Companies Act. A suit was filed by them in September, 1990 in the Calcutta High Court wherein a direction was given to the official liquidator to function as a receiver too.;