- (1.) This order will dispose of two Company Petitions 59 and 220 of 1993 both of which have been filed for the setting aside of the sale made by the Haryana Financial Corporation (for short, 'the Corporation') of the properties belonging to M/s. Haryana Electro Steel Limited (now in liquidation and referred to hereinafter as 'the Company') in favour of one Shri D. R. Wadhwa. The official liquidator in his petition (C.P. 59 of 1993) has prayed that directions be given to the respondents for delivering possession of the properties of the Company to him. The other petition has been filed by an ex-Director of the Company under Rule 9 of the Companies (Court) Rules, 1959 to set aside the sale by this Court in exercise of its inherent powers.
(2.) The Company took a loan of Rupees 24,50,000 /- from the Corporation in the year 1975 and in order to secure this amount a mortgage deed was executed by the Company. Its plant and machinery along with the building and land stood mortgaged with the Corporation. Three Directors of the Company including Shri Pardeep Gupta also executed several personal guarantees in favour of the Corporation. The mortgage deed was registered on 5/03/1975 and the first charge of the Corporation over the properties of the Company was registered with the Registrar of Companies. The Company defaulted in the repayment of the loan and interest due thereon as a result whereof the Corporation filed a petition before the District Judge, Sonepat under Section 31 of the State Financial Corporations Act, 1951 (1951 Act for brevity) for an order for the recovery of Rs. 26,41,992.77 ps. with future interest. The petition was allowed by the District Judge on 27-2-1980 and the Corporation was held entitled to recover the aforesaid amount with future interest @ 13.5% by putting the mortgaged properties to sale. It is common case of the parties that the Corporation made several attempts to sell the property in execution of the order passed by the District Judge and despite a number of auctions fixed through the Court Auctioneer, no proper bid was received. The Corporation ultimately abandoned the idea of getting the order executed.
(3.) In the meantime, by an order passed on 16/01/1986 in Company Petition 36 of 1985, the Company was ordered to be wound up and the official liquidator attached to this Court was appointed its liquidator. There after on a petition filed by the ex-management under Section 466 of the Companies Act, 1956 (hereinafter called 'the Act') the winding up proceedings were stayed on 4-3-1986 and this stay order was vacated after two years on 11-3-1988.;