- (1.) THIS company application has been filed with the following prayers : (i) issue directions to the non -applicant Official Liquidator to render complete account of M/s. San India Electrochem Private Ltd. (in liquidation); (ii) declare that the applicant Corporation is entitled to receive the payment of entire expenditure incurred by it towards the advertisement, insurance premium and security expenses etc. before distribution of the sale proceeds among the secured creditors; (iii) declare that the applicant Corporation is entitled to receive the payment of entire sale proceeds realized from the secured assets and consequently issue direction to the non -applicant Official Liquidator to make payment of balance amount of the sale proceeds to the secured creditors in proportion of their outstanding dues. To evaluate the merits of the application, it would be necessary to recapitulate essential background facts.
(2.) THE company, in liquidation, at the time when it was operational, was sanctioned a term loan of Rs.55.07 lacs by the applicant Rajasthan State Industrial Development and Investment Corporation Ltd. (hereinafter RIICO ), out of which Rs.49.44 lacs were disbursed upto 30.09.1992. The said term loan was secured on first charge by mortgage and hypothecation of existing and future assets of the company. On the company having defaulted on the term loan obligations, RIICO resorted to its powers under Section 29 of the State Financial Corporation Act, 1951 (hereinafter the Act of 1951 ) and took possession of the fixed assets of the company on 29.08.1996.
(3.) THE company in issue was then ordered to be wound up by this Court under its order dated 20.03.1997 passed in Company Petition No.24/1996. The applicant RIICO sought to keep outside the winding up proceedings to recover its dues and was so allowed by the Company Court under its order dated 02.08.2002. The Court however also issued directions with regard to the procedure to be adopted by the applicant -RIICO in putting the mortgaged property of the company in liquidation to sale which was to be made after publication of notice of the sale. Further the proceeds from the sale of the assets of the company in liquidation was to be deposited with the Official Liquidator (hereinafter O.L. ). RIICO in terms of the directions issued by the Company Court brought the assets of the company in liquidation to sale for a sum of Rs.114 lacs on cash down basis. The Company Court vide order dated 12.05.2006 directed that the amount of Rs.114 lacs obtained by the auction sale be deposited with O.L. and be disbursed as per the provisions of the Companies Act, 1956 (hereinafter the Act of 1956 ). The amount of Rs.114 lacs as directed by the Company Court was deposited with the O.L. on 26.06.2006.;