UNITED BANK OF INDIA Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) The Naskarpara Jute Mills Co. Ltd. was wound up under the orders of the High court at Calcutta on 28/07/1981 and the Official Liquidator was appointed its liquidator.

(2.) The company had taken on lease from Bharat Abhyudaya Cotton Mills Ltd. about 7 bighas of land under a deed dated 2/07/1931. The lease was for 99 years and permitted renewal on the same terms for another 99 years. The rent under the lease was Rs. 1,200. 00 per annum. On September 25,1935 the lessor's interest in the said land was purchased by Brij Mohan Saraogi who settled the same upon a trust called the Brij Mohan Saraogi Charitable Trust. The company attorned to the Trust as its tenant in respect of the said land. At the time when the winding-up petition was filed the company had been in default of rent and consent terms had been arrived at whereunder the company had undertaken to pay the arrears.

(3.) On 13/08/1981, the United Bank of India filed a suit against the company in liquidation after having obtained the leave of the court under Section 448 of the Companies Act for a decree in the sum of Rs. 1,81,07,623.64 with interest up to 31/07/1981. Upon the application of the Bank the Official Liquidator was appointed Receiver of the goods, stocks and assets hypothecated by the company in liquidation to the Bank and all immovable property, including the said land and the factory premises which stood upon it, which had been mortgaged to the Bank.