U.P FINANCIAL CORPORATION Vs. SURINDER STEIN MALT LTD. AND OTHERS

JUDGEMENT

(1.) CA No. 232 of 1978 was filed by UP Financial Corporation (hereinafter referred to as 'the Corporation') and it was ordered therein that 'Leave is, therefore, granted to Uttar Pradesh Financial Corporation to recover its dues from the company by the auction and sale of the mortgaged property, subject, however, to the directions that the auction, and sale would be carried out in consultation with the official liquidator attached to this Court and the sale proceeds to the extent they exceed the entitlement of Corporation, and the costs would be deposited with the official liquidator within four weeks of the receipt thereof by the Corporation.' In pursuance of this order, sale was held and CA No. 339 of 1986 was filed under section 446 of the Companies Act by the Corporation with a request that 'this Court be pleased to grant sanction to the sale of respondent No. 1's factor on the terms and conditions (1) to (7) set out in paragraph 17 of the said application. Notice thereof was given to-the official liquidator who filed his reply and the said CA No. 339 of 1986 was disposed of vide orders of 4th April, 1986 by B N Kirpal J., and sanction was granted to the sale of respondent No. 1's factory on the terms and conditions mentioned therein. An appeal was preferred against the said order by the official liquidator and the said appeal was accepted by the Division Bench vide its orders dated 2nd Feb., 1990 and it was directed by the Division Bench that 'we allow the appeal and set aside the judgment and order and remand the case to the learned Company Judge to decide the matter in accordance with law". It is in this background that this CA has come up for disposal before this Court.

(2.) It would be appropriate to mention here that another CA No. 502 of 1986 was filed by auction purchaser M/s. Ajit Cotton Ginning Pressing Dal & Steel Rolling Mills (hereinafter referred to as 'the Mill') for confirming its offer of Rs. 42 lacs made to and accepted by UP Financial Corporation as per letter dated 15th Feb., 1986 and the said CA was also disposed of in terms of the order dated 4th April, 1986 in CA No. 339 of 1986.

(3.) I have heard the learned counsel for the Corporation, mill and official liquidator and after going through the file, I have come to the following findings: