JUDGEMENT
B.Mukherji, J. -
(1.) These five connected applications in revision arose out of a single controversy in which the five applicants were equally /interested: the applications having arisen out of the same order of the Court below, namely, an order dated the 17th October 1958, The applications in revision were connected in this Court and have been listed together, and I propose deciding them by this Judgment.
(2.) A few facts need be stated in order to appreciate the points in controversy between the parties. The Padrauna Raj Krishna Sugar Works Limited, Padrauna, appears to have fallen on evil days, and, thus got into financial difficulties, with the result that several decrees came to be made against this Sugar Mills. As was natural, each decree-holder attempted to get his decree satisfied, and to that end he took the steps he thought would further his end in getting satisfaction of his decree. The Padrauna Raj Krishna Sugar Works Limited, however, had their own difficulties to face and those difficulties also, in a sense, became difficulties for the judgment-creditors. The Padrauna Raj Krishna Sugar Works Limited owed large sums of money to the State which were recoverable from the Sugar Works Limited as arrears of land revenue by the Collector. The result was that the Collector took action under the law and had the mills put up for sale and the mills were actually sold for about Rs. 26 lacs. This amount of Rs. 26 lacs was more than enough to pay up the Government dues in respect of which the mills had been sold, with the result that a large balance remained in the hands of the Collector, an amount which could legitimately be made available for distribution to creditors for liquidating their debts. The creditors came to know of this, and some of the creditors moved in the matter very swiftly and had the moneys attached, in the hands of the Collector of Deoria, who held the money. At the instance of one of the creditors (this fact I have taken from Mr. Kunzru) the money which was held by the Collector, as balance, was brought over to the Court of the Civil Judge Deoria. It may be mentioned here that before this money came to the Court of the Civil Judge at Deoria several executions were pending in the Court of the Civil Judge--some of these applications had originated in the Court of the Civil Judge, Deoria, while others came to that Court on transfer from other Courts.
(3.) The aggregate claim of the decree holders entitled to rateable distribution came to Rs. 6,40, 534/25 nP. while the amount which was received by the Civil Judge from the Collector of Deoria as surplus of the sale proceeds of the Padrauna Raj Krishna Sugar Works Ltd., Padrauna, was Rs. 3,80,726/32 nP. only. That being the position, the decrees of the creditors could only be paid up proportionately and not fully, and consequently it became necessary for the Court to determine whether the money received in the Court of the Civil Judge was to be rateably distributed, and, if so, between which of the creditors. The learned Civil Judge came to the conclusion that the amount which had been received from the Collector was liable to rateable distribution under the provisions of Section 73 C. P. C. The learned Judge further held that distribution of the assets was to be made amongst the first forty-seven creditors whom he set out in a list annexed to his order. He directed that a chart showing the amounts payable to the various decree-holders should be put up on the Notice Board and that anyone wishing to object in regard to any matter shown in this chart could file such objections by the 31st October, 1958. The order of the learned Judge was made on the 17th October, 1958, and the chart was put up on the Notice Board in accordance with the Judge's direction on that very date.;
Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.