CANARA BANK Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) These appeals under Sec. 483 of the Companies Act, 1956 read with Rule 9 of Companies (Code) Rules, 1959 have been filed against the order dtd. 13/6/2013 passed by Learned Company Judge by which company application filed by the official liquidator under Sec. 537 read with Sec. 456 of the Companies Act has been allowed and the auction of the property held on 5/10/2005, which was confirmed on 16/11/2005 as well as sale certificate dtd. 2/2/2006 issued by the Debt Recovery Tribunal has been set aside. In addition, the respondents in the company application were directed to hand over the possession of the property in question. O.S.A.No.48/2013 has been filed by the financial institution viz., Canara Bank whereas, O.S.A.No.36/2013 has been filed by the auction purchaser.

(2.) Facts leading to filing of these appeals briefly stated are that M/s Kritika Rubber Industries Private Limited (hereinafter referred to as 'the Company' for short) had availed of financial assistance from the Canara Bank (hereinafter referred to as 'the Bank' for short). However, the company defaulted in making repayment of the amount of loan to the bank. Thereafter, the bank initiated the proceedings for recovery of the aforesaid amount before the Debt Recovery Tribunal, Bangalore (hereinafter referred to as 'the Tribunal' for short). Therefore, the bank on 19/2/1997 initiated proceedings for recovery of the amount before the Tribunal. A petition for winding up of the company viz., Co.P. No.167/1999 was filed by one of the creditors viz., Colonel D.B.Singh on 19/6/1999 against the company. On 30/3/2000, the aforesaid petition for winding up of the company was admitted. The recovery proceedings viz., O.A.No.194/1997 initiated by the bank against the company was allowed by the tribunal on 26/6/2000. In execution proceedings, recovery officer by an order dtd. 27/6/2005 attached the property No.67G in Sy.No.205 measuring 4026 square feet situated at Bommasandra, Anekal Village, Bangalore Rural Taluk (hereinafter referred to as 'the schedule property' for short). Thereafter, a public notice of auction of sale was issued on 2/10/2005 by recovery officer of the tribunal to sell the schedule property.

(3.) In pursuance of the aforesaid public notice, the auction was conducted on 5/10/2005, which was confirmed on 16/11/2005. Thereafter, the Tribunal issued a sale certificate on 2/2/2006 in favour of auction purchaser. After the sale certificate was issued, the petition for winding up of the company as allowed on 29/6/2006.