OFFICIAL LIQUIDATOR OF M/S. GADAG FORGE FITS (INDIA) PRIVATE LIMITED (IN LIQUIDATION) Vs. M/S. KARNATAKA STATE FINANCIAL CORPORATION AND SRI. VIKAS CHANNAPATNA KALAGI

JUDGEMENT

(1.) THE present application is filed by the Official Liquidator to contend that M/s. Gadag Forge Fits (India) Private Limited (in liquidation) was ordered to be wound up by an order dated 17.03.1989 in Company Petition No. 116/88 and the Official Liquidator was appointed as the Liquidator of the Company. The company had assets of plant and machinery and 'industrial free hold land with the buildings thereon situated at land in Sy. No. 4/1 Hirekoppa village, Betageri Hobli, Gadag Taluk and District measuring about 2 acres 31 guntas with a built area of 965 sq. mts. Karnataka State Financial Corporation (hereinafter referred to as 'the KSFC' for brevity), Government of Karnataka Undertaking, had filed C.A. No. 277/1994 seeking delivery of possession of the assets of the company in liquidation and the same was handed over to KSFC on 14.07.1995.

(2.) IT is the case of the Official Liquidator that the order of winding up of the company in liquidation did recognize KSFC's right as a secured creditor to stand outside the winding up proceedings for enforcement of the security for realisation of the amounts due from the company. This court had permitted the KSFC to sell the property by standing outside the winding up proceedings by an order dated 3.9.1993.

(3.) IN the meanwhile, the Official Liquidator was kept in the dark of the status of the assets of the company in liquidation in spite of letters written over the years from the year 2006 to 2010 and it is only in the year 2012 that the Official Liquidator has been informed of the KSFC having sold the property aforesaid of the company in liquidation for a sum of Rs. 13.50 lakhs.