KERALA FINANCIAL CORPORATION Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THE Kerala Financial Corporation, hereinafter referred to as 'k. F. C. ' has filed this application for an order granting leave to initiate proceedings against M/s. Prime Wood Products (P) Ltd. (in liquidation), hereinafter referred to as 'company' as provided under S. 29 of the State financial Corporations Act, 1951, hereinafter referred" to as 's. F. C. Act'.

(2.) THE Company is being wound up by this Court. THE official Liquidator attached to this Court is the Liquidator of the Company. THE Liquidator has filed a counter-statement. K. F. C. , State Bank of Travancore and Small Industries Development and Employment Corporation are the secured creditors of the Company. THE State Bank of Travancore has got charge over stock-in-trade, raw material, etc. of the Company. THE K. F. C. has got charge over land and building, plant and machinery. Small Industries Development and employment Corporation has got second charge over the machinery of the Company. THE State Bank of Travancore after obtaining leave of this Court, sold the movable assets.

(3.) UNDER S. 29 of the S. F. C. Act, the Financial corporations are given the-'right to take over the management or possession or both of the industrial concern, as well as the right to transfer by way of lease or sale and realise the property pledged, mortgaged, hypothecated or assigned to the Financial Corporation'. The prayer in the application is to permit the K. F. C. to exercise this right and to sell the property.