OFFICIAL LIQUIDATOR METALLIC Vs. MANAGER KARNATAKA STATE

JUDGEMENT

(1.) COMPANY Application No. 420 of 1994 has been filed under Section 537(1)(b) of the Companies Act, 1956, seeking for a declaration that the sale made by the Karnataka State Financial Corporation is void under Section 537(1)(b) of the Companies Act having conducted without the leave of the court and to direct the second respondent to hand over the property and to direct the Karnataka State Financial Corporation not to execute sale deed or collect sale proceeds from the second respondent.

(2.) IT is averred in the application that M/s. Metallic Soaps and Chemicals (P.) Ltd., has been ordered to be wound up by order dated 13-8-1993, passed in Company Petition Nos. 90 of 1987 and 74 of 1989, and the official liquidator attached to this Court was appointed and the official liquidator was directed to take charge of all the assets, properties and effects of the company. The official liquidator sent notice to the ex-directors of the company on 1-10-1993, to hand over the books of account and assets of the company. The notices sent were returned undelivered with an endorsement "addressee left" and thereafter correct address was obtained. The official liquidator deputed his staff to take possession of the property at the correct address and when the staff went there, it was learnt that the Karnataka State Financial Corporation has conducted sale in favour of the second respondent without the leave of the court during the pendency of the winding up proceedings in the writ petition. Wherefore, in view of the provision of Section 537(1)(b) and since the sale is held without leave of the court, the application is filed for the abovesaid relief.

(3.) I have heard learned Counsel appearing for the parties. Today an application has been filed seeking permission to deposit Rs. 3,75,000.