- (1.) By the instant application under Sections 446 and 537 of the Companies Act, 1956 (for short '1956 Act'), the applicant has prayed as under: To quash and set aside the notice (Annexure-A/2) published in newspaper Rajasthan Patrika dated November 13, 2005 and the auction proceedings dated November 22, 2005 along with the certificate of sale dated June 7, 2006 (Annexure-A/5) issued by the Recovery Officer, Debts Recovery Tribunal, Jaipur (Rajasthan) and to direct Recovery Officer, Debts Recovery Tribunal, Jaipur (Rajasthan) not to sell any assets or effects of the company in liquidation without leave of this Court. The respondent No. 2 be directed to deposit the sale proceeds of the auction proceedings dated November 22, 2005 with the Official Liquidator and not to take any decision regarding its disbursement without leave of Hon'ble Court.
(2.) Contextual facts depict that the company M/s. Kesri Vanaspati Products Limited was ordered to be wound up by Hon'ble High Court vide order dated January 23, 2004 and the Official Liquidator attached to this Court was appointed as Provisional Liquidator with the direction to take charge of all the property and effects of the company in liquidation. The provisional winding up order was passed on the matter forwarded by the Board of Industrial and Financial Reconstruction (for short "BIFR") vide order dated July 18, 2003 in case No. 242/2000. The charge of the assets and record of the company in liquidation situated at Maharajpura, Navai, District Tonk was taken over by the Official Liquidator on April 3, 2004. The Industrial Development Bank of India Limited, Sansar Chandra Road, Jaipur (for short 'IDBI), Vijaya Bank, Jaipur, the State Bank of Bikaner and Jaipur (for short 'SBBJ') and the Rajasthan State Industrial Development and Investment Corporation Limited (for short 'RIICO') are the secured creditors of the company in liquidation. Out of the above referred secured creditors of the company in liquidation except the RIICO the other secured creditors have already opted to remain out of the winding up proceedings.
(3.) The IDBI in response to a letter from the Official Liquidator conveyed him vide letter dated June 11, 2004 (Annexure-A/1) that it had filed an application with Debts Recovery Tribunal, Jaipur (Rajasthan) (for short 'DRT') which had decreed in its favour vide order dated August 20, 2003. Para 4 of the letter reads as under: (iv) Taking over of possession of secured assets- As per the provisions of the Companies Act, after the confirmation of winding up of the company by the Hon'ble High Court. the office of the Official Liquidator shall take necessary action as regards to possession and protection of the assets. We request you to constitute Sale Committee for the sale of the assets of the company under your Chairmanship subject to obtaining suitable order of the Hon'ble High Court. On November 13, 2005 a notice issued by Recovery Officer, DRT was published in newspaper Rajasthan Patrika for auction of the properties of the company in liquidation on November 22, 2005 in Recovery Matter No. 120/2003, IDBI v. Kesri Vanaspati Products Limited.;