BANK OF MADURA LIMITED Vs. NATIONAL TEXTILE CORPORATION LIMITED
SUPREME COURT OF INDIA
BANK OF MADURA LIMITED
NATIONAL TEXTILE CORPORATION LIMITED
Referred Judgements :-
NATIONAL TEXTILE CORPN. VS. BANK OF MADURA LTD.
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(1.)This appeal by special leave is against the judgment dated 17-6-1997 of the High Court of Madras in Writ Appeal No. 932 of 1992,National Textile Corpn. v. Bank of Madura Ltd.,1988 AIR(Mad) 113 setting aside the order dated 4-3-1992 of the learned Single Judge in WP No. 4218 of 1984, and restoring the order dated 4-9-1982 of the Commissioner of Payments in Claim Case No. 1/IV/Sarada of 1977, which was affirmed by the District Judge, Coimbatore, as per judgment dated 23-8-1983 in Civil Misc. Appeal No. 3 of 1983.
(2.)Sri Sarada Mills Ltd. (hereinafter referred to as "the Company") obtained a mortgage loan of Rs 15 lakhs on 26-6-1968 from the appellant Bank. The Company had also drawn several usance bills on the appellant Bank during 1966 to 1968 towards the purchase of certain textile machinery, which were accepted and paid by the appellant Bank in terms of agreements/deferred payment guarantees/undertaking executed by the Company on 16-5-1967, 16-5-1967 and 12-1-1968 for Rs 1,97,937, Rs 2,37,032 and Rs 4,44,357.38.
(3.)The Company became sick and its management was taken over by National Textile Corporation Ltd., the first respondent herein ("NTC", for short) on 31-10-1972 under the provisions of the Sick Textile Undertakings (Taking Over of Management) Act, 1972. Subsequently, the textile undertaking of the said Company was nationalised with effect from 1-4-1974, and consequently, the textile undertaking along with the right, title and interest of the owner in relation to such undertaking stood transferred to and vested in the Central Government and immediately thereafter in NTC, under the provisions of the Sick Textile Undertakings (Nationalisation) Act, 1974 ("the Act", for short).
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