ALLAHABAD BANK Vs. BENGAL PAPER MILL CO LTD

JUDGEMENT

(1.) These are applications by respondent no. 2 in the above mentioned appeals, C. A. Nos. 4191 -4193 of 1991. The prayer therein is for a clarification of the judgment in the appeals rendered by this Court on 20. 4.1999 by providing that the applicant was also entitled to the amount of rs. 1,56,21,839.25 being the interest that has accrued on the purchase price of Rs. 2crores paid by it for the assets of the Bengal Paper Mills Co. Ltd. , a company in liquidation. The applications are opposed by the creditors, some of whom were the appellants in the appeals.

(2.) The Bengal Paper Mills Co. Ltd. was ordered to be wound up in a winding up petition filed by its creditors. The order was passed on 24.4.1987. Even before the order for winding up, the assets were put in possession of two joint receivers appointed in a suit by one of the creditors. On the official Liquidator being appointed in liquidation, the joint receivers were directed to put the Official Liquidator in possession of the assets of the debtor company. They put him in possession. The possession was thus obtained by the Official Liquidator. After getting the assets valued, the Company Court on 29.6.1989 granted leave to the Official Liquidator to sell the assets and properties of the company in liquidation. Pursuant thereto, the Official Liquidator issued a sale notice on 14.9.1989. Respondent no. 2 in the appeal, the applicant, made an offer on 14.9.1989. The offer was accepted and the sale was ordered on 15.9.1989. It is seen that the sale was confirmed the same day and possession was given to the purchaser, the applicant on 16.9.1989. But, it may be noticed that the purchase price of Rs. 2 crores was not collected at once and the purchaser was permitted to pay the price in four quarterly instalments. The sale was confirmed on the terms quoted in the judgment of this Court. The sale and its confirmation by the Company Judge was challenged in appeals before the Division Bench of the Calcutta high Court. The Division Bench of the High court in spite of noticing various irregularities and infirmities in the sale and the inadequacy of the price in the light of the valuation of the assets, proceeded to dismiss the appeals. The creditors challenged that decision in the above appeals before this court. This Court by its judgment dated 20. 04.1999, allowed the appeals and set aside the sale on the grounds set out therein. It is seen that the applicant herein prayed before this Court that the amount of Rs. 2 crores paid by it in instalments by way of purchase price, may be refunded to it and that it may also be repaid the sums which it had allegedly expended for the revival of the company. This Court, in the judgment, dealt with the claim of the applicant as follows:

(3.) On 4.6.1999, the applicant requested the official Liquidator to refund the amount of rs. 2 crores deposited by it towards the purchase price as directed in the judgment. The Official Liquidator promptly refunded a sum of Rs. 2 crores to the applicant on 6.7.1999. It is the case of the applicant that it had claimed that it was also entitled to the interest earned by the Official Liquidator on investment of the sum of Rs. 2 crores, but that the Official Liquidator refused to pay any interest. It is in that context that the present applications have been filed by the applicant seeking what it calls a clarification of the Judgment rendered by this court.