Brij Mohan Lall, J. - (1.) This is an application by Shri Vikram Cotton Mills Ltd. (hereinafter described, for brevity's sake, as the company) under Section 153 of the Indian Companies Act (VII of 1913) praying that this Court may sanction a scheme put forward by it for payment of its debts.
(2.) This company was registered in 1910. One of its principal objects was the manufacture of cloth. For the last six or seven years it has been in financial difficulties It approached the Industrial Financial Corporation (hereinafter described as corporation) for help and succeeded, by executing a deed of an English mortgage, in obtaining from it a loan of rupees ten and a half lakhs, repayable in certain instalments. Under this deed the corporation had a right to enter into possession of the mortgaged property and to sell it in the event of non-fulfilment of the conditions mentioned in the deed. Repayment could not be made as agreed.
(3.) On 12-2-1954 Messrs. Jwala Prasad Radha Krishna, who claim to be the company's creditors but whose claim is denied by the company made an application lor its compulsory winding up. In June 1954 the corporation exercised its right of taking possession of the company's property and entered into possession thereof.;