GHAZIABAD DEVELOPMENT AUTHORITY Vs. REGENCY INDUSTRIES LTD

JUDGEMENT

(1.) M /s. Regency Industries Limited, a company incorporated and registered under the Companies Act, 1956 (hereinafter referred to as the 'Companies Act') [for short 'the Company'], went into financial difficulties and is now in liquidation. One of the assets of the Company was a plot bearing No.12, Vaishali Group Housing Scheme, Ghaziabad ad measuring 4000 sq.mtrs. on which flats are stated to have been constructed. This plot was allotted by the Ghaziabad Development Authority, the appellant, on 4.11.1989 for a total consideration of Rs. 120.00 lakh out of which Rs. 60.00 lakh was paid as earnest money and the balance amount had to be paid as per the schedule laid down in a communication dated 29.9.1989.

(2.) IT is the say of the appellant that a letter dated 2.11.1990 was received by them from the Allahabad Bank, Navyug Market Branch, Ghaziabad seeking information qua this plot and an NOC for mortgaging the plot in favour of the Bank. The appellant conveyed its no objection vide communication dated 29.3.1991 subject to the terms and conditions specified in the letter. The payments of the amounts due under the allotment letter, however, were not paid and the appellant vide letter dated 22.5.1993 cancelled the allotment on account of non payment of Rs. 89,34,884.00 as due up to 15.3.1993. The appellant further initiated proceedings under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 and it is stated that even an eviction order has been passed.

(3.) THE aforesaid asset of the Company being the plot at Ghaziabad became a subject matter of dispute as to how it should be dealt with. It is in these circumstances that the learned Company Judge vide orders dated 14.7.2006 and followed by order dated 8.9.2006 directed the meetings to be held amongst the Officers of the Allahabad Bank and the appellant along with the OL to find a solution as they were the two significant secured creditors. Consequently, meetings are stated to have been held on 27.9.2006 and 13.10.2006.