KARNATAKA BANK LTD Vs. CRAFT TOOLS PVT LTD

JUDGEMENT

(1.) These two applications under Sec. 446(2)(b) of the COMPANIES ACT, 1956, (hereinafter referred to as the Act) are disposed of by the following common order as a common question of law arises for consideration in both the applications. The applicant in CA. No. 617/82 is the Karnataka Bank Ltd., a Banking concern incorporated under the Banking Companies Act. It is represented by its Manager at the Harihar branch who is also its duly authorised power of attorney holder. The applicant-Bank claims to be a secured creditor of the respondent - M/s Craft Tools Pvt. Ltd., which has been ordered to be wound up by this Court. The respondent is represented by the Official Liquidator who is the Liquidator of the Company in question. The Bank claims to have advanced a little over Rs. 9,74,259.04 as pronote loans in certain sums on four hypothecation deeds in respect of machinery and stock-in-trade. The prayer in the application is that the Official Liquidator may be directed to hand over all moveable situated in the factory premises of the Company in liquidation at Harihar including the machinery and stock in trade which is said to be hypothecated under the four hypothecation deeds to the Bank. Alternatively, it is prayed that the Court may cause the sale of the said moveables and machinery hypothecated with the Bank and direct the amount to be paid to satisfy the loans of the petitioner's Bank on priority, as it is a secured creditor.

(2.) Similarly, in C.A. No. 646/1982 the applicant is one Dr. H. Job and the respondent is M/s Mysore Tools Ltd., which is also now in liquidation. In that application the petitioner Dr. H. Job has prayed for an order directing the Official Liquidator to give custody of the machinery and other materials which are said to have been hypothecated to him under a deed of hypothecation by the respondent - M/s Mysore Tools Ltd. The amount claimed is Rs. 4,34,280/- together with interest etc.

(3.) It is useful to state in both the applications, the applicants have made it clear that they wish to stand out-side the winding up proceedings.