ALLAHABAD BANK Vs. ARC HOLDING LIMITED

JUDGEMENT

(1.) Leave granted.

(2.) The appellant-Allahabad Bank the decree-holder has raised a question, whether after an order passed in execution proceedings for the sale of plant, machinery and moveable lying at the factory, can the same Court later pass an order for sale of the factory of the company as a 'going concern'. The submission is, by introducing into the sale of the factory as a 'going concern' has in fact, nullified the execution itself. In order to appreciate the controversy we are hereunder giving short essential facts.

(3.) The appellant-Allahabad Bank the decree-holder is a secured creditor of Rishra Steels Limited respondent No. 4 the judgment-debtor. On 19th December, 1990 the appellant-bank filed a suit against the said company represented by the Official Liquidator in the High Court for a decree for Rs. 4,06,90,548/- together with interest. On 15th July, 1996 a decree was passed by the Calcutta High Court for Rs. 3,47,94,232.85 together with interest. The decree provided; payment of decretal amount in 60 equal monthly installments on and from 12th September, 1996; in default the petitioner was entitled to sale the suit properties by public auction or private contract. No appeal was preferred from this order nor any installment was paid by the judgment-debtor. On the 26th August, 1997 the appellant-bank applied for execution of decree for the aforesaid amount along with interest. It is relevant to refer that the aforesaid judgment-debtor-company went into liquidation under the order of the winding up dated 4th June, 1990.