GOVERNMENT OF ORISSA Vs. ASHOK TRANSPORT AGENCY

JUDGEMENT

(1.) M/s Ashok Transport Agency, Respondent No. 1 herein (hereinafter referred to as the plaintiff), filed a suit against M/s O.M.C. Alloys Limited, a Government Company, (hereinafter referred to as the defendant), for recovery of a sum of Rs. 3,90,210/- with interest thereon. The suit was filed on 1.8.1986. The defendant filed a written statement on 14.10.1987. On 29.08.1990, the suit was dismissed for default. On 20.09.1990, the plaintiff filed an application under Order IX Rule 9 of the Code of civil Procedure for restoration of the suit. On 03.08.1991, the defendant filed a memo substantially submitting that it was not opposing the restoration of the suit. The application for restoration was heard and posted for orders to 17.8.1991. On that date, orders were not pronounced and the pronouncement of orders was adjourned to 02.09.1991.

(2.) On 30.08.1991, the Ministry of Law, Justice and Company Affairs, Government of India, issued a Notification S.O. 562 (E) in exercise of the powers conferred under Sub-sections (1) and (2) of Section 396 of the Companies Act, 1956, called the OMC Alloys Limited and the Orissa Mining Corporation Limited (Amalgamation) Order, 1991. It provided for the amalgamation of the defendant with the Orissa Mining Corporation Limited (hereinafter referred to as the Corporation), a Government of Orissa company incorporated under the Companies Act. In addition to providing for the amalgamation of the two companies and for transfer of all rights and properties of the defendant and the vesting of the same in the Corporation in accordance with law, by Clause 12, it provided for the dissolution of the Company. Clause 12 reads:

(3.) Clause 7 thereof made provision for saving of legal proceedings. It reads:-