FAQIR CHAND GUPTA Vs. TANWAR FINANCE PRIVATE LIMITED

JUDGEMENT

(1.) This appeal under Section 483 of the Companies Act, 1956 is by the Auction Purchaser against the Judgment and order dated February 28, 1979 of the Company Judge declaring auction sale of the property in execution of money decree as invalid and void because it was held without leave of the Court.

(2.) M/s. Tanwar Finance Private Limited a company registered under the Companies Act, 1956 (hereinafter called 'the Act) in a meeting held on 16th November, a special resolution that the company be wound up voluntarily and appointed Ch. Ram Singh son of Ch. Bhanwar Singh as liquidator. Prior to the passing of this resolution Kanwar Ram Chander had filed a suit against the said company for recovery of Rs. 13.000.00 which was decreed on 6th November, 1967, and on 15th July, 1968 he got attached the land belonging to the company, measuring 22 Bighas, 8 Biswas bearing Khasra No. 31 and 410/28 situated at Azadpur, Delhi. The executing court by order dated 6th September, 1968 directed sale of the said land but auction did not take place. On 3rd January, 1969 the liquidator filed a petition under Section 518 of the Act alleging that Kanwar Ram Ghander and six others had obtained seven money decrees against the company, that Kanwar Ram Chander, decree-holder got attached the said land, that the land had been acquired by the Union of India and notifications under Sections 4,6 and 9 of the Land Acquisition Act had been issued and prayed that the attachment and order for sale of the land passed by the court of Sh. Shamsher Singh, Sub Judge, 1st Glass, Delhi in Suit No. 761 of 1977 and Execution case No. 77 of 1963 be set aside and the land be ordered to be released and that further proceedings in execution be stayed. The seven decree-holders filed application C.A. No. 115 of 1969 before the Company Judge for the removal of the liquidator Ch. Ram Singh and for the appointment of the Official Liquidator as liquidator of the company. The Company Judge by order dated April 1, 1969, on the agreement of the parties, ordered that the voluntarily winding up would continue subject to supervision of the court and Gh. Ram Singh continued as liquidator of the Company. The Company Judge (S.K. Kapur, J.) on April 15, 1969 on the agreement of the parties passed the following orders :

(3.) Accordingly seven execution cases pending before the Sub Judge, Delhi were stayed. The decree-holders then filed application C.A. No. 190 of 1969 before the Company Judge under Sections 526 and 53 7 of the Act on 21st May, 1969 seeking leave for the sale of the land attached in execution of the decree of Kanwar Ram Ghander and also for the sale of the said land in execution of the other six decrees. They further prayed that after the sale in execution, preference may be given to them over other creditors in the matter of payment of the amounts due to them. On 19th January, 1970 the Company Judge (S. N. Shanker, J.) passed the following orders :