SALARPURIA HOUSING (P.) LTD. Vs. NGEF LTD.

JUDGEMENT

(1.) THIS is an application filed under Rules 6, 7 and 9 of Company Rules read with Section 151 of C.P.C. by a person, who claims to have had certain agreement with the respondent -company, seeking direction to be issued by this court to the respondent -company to execute a sale deed in favour of the applicant -company pursuant to the agreement of sale dated 17 -1 -2002, purported to have been executed by the respondent -company.

(2.) THE application is supported by an affidavit by one Bijay Kumar Agarwal, Director of Applicant -company, inter alia stating that an agreement of sale of certain properties, belonging to the respondent -company was entered into on 17 -1 -2002; that pursuant to the said agreement of sale, certain amounts have been paid by way of an advance; that the respondent -company has not completed the sale transaction within the stipulated time, in spite of several requests made by the applicant. The respondent -company having not executed the sale documents and on coining to know that the reason for not so executing the sale document was that the company petition No. 154/2002 was pending before this court, and the applicant is required permission of this court in this petition. Hence, the application has been filed.

(3.) MANY secured creditors of the company, who have intervened the matter in paper publication that, had been carried out in this regard. They have also filed their statement of objections opposing the application, inter alia contended that the State Bank of Mysore and other Banks formed a consortium, who had financed the respondent -company; that the subject -matter of property in question has been mortgaged in their favour by way of security to secure the loan that the Banks have advanced to the company; that the so -called agreement of sale between the applicant and the respondent -company is neither to their knowledge nor with their consent; that it is not binding on them; that a direction of this nature cannot be sought on the basis of said agreement of sale; that it is virtually adopted by the applicant to pass proceedings, though it was required before the civil court for their specific enforcement of the agreement that caused in his favour; that the companies' court has no jurisdiction in the matter to act; an execution court for giving effect to agreement of sale, based on which the directions arc sought for; that the respondent -company having been declared a sick company by the Board for Industrial Finance and Reconstruction, and further Board having already recommended the company to be wound up in terms of provisions of Section 20(1) of the Sick Industrial Companies (Special) Provisions Act, 1985, any properties belonging to the company cannot be ordered to be sold, without there being an order for winding up the affairs of the respondent -company and in the circumstances, the application is liable to be dismissed. The consortium of Banks have also raised other objections regarding the enforceability of the agreement; that the subject -matter has not been properly valued; that in fact, the applicant has not made out any ground or cause for the relief sought for in the application and the application is liable to be dismissed.