ANANT MILLS LTD Vs. CITY DEPUTY COLLECTOR AHMEDABAD

JUDGEMENT

(1.) This summons is taken out by the Official Liquidator of Ananta Mills Ltd. (in liquidation) (hereinafter referred to as the Company) praying for an order for raising the attachments levied by the first and second respondents on behalf of several creditors of the company and for a direction directing the second respondent to delete certain entries made in the record of rights in respect of the properties of the company pursuant to the afore mentioned attachments.

(2.) The Indokem Private Ltd. filed Company Petition No. 8 of 1967 on March 24 1967 praying for an order for winding up the company. By an order made on September 11 1967 the company was ordered to be wound up and the Official Liquidator was appointed as Liquidator of the company. On the same day the Liquidator took actual possession of the assets of the company. In the meanwhile a scheme of compromise and/or arrangement between the company on the one hand and its different classes of creditors and members on the other hand was proposed and the court sanctioned the scheme of compromise and/or arrangement as per the order made on October 15 1969 and simultaneously cancelled the order made on September 11 1967 winding up the company The sponsorers of the scheme filed Company Application No. 87 of 1970 disclosing their inability to further implement the scheme whereupon the court appointed the Official Liquidator as the Provisional Liquidator who pursuant to the order of the court took possession of the assets of the company on October 5 1970 Thereafter the court in exercise of the powers conferred upon it by section 392 made an order for winding up the company and appointed the Official Liquidator as the Liquidator of the company. The Liquidator after obtaining directions under sec 457 read with Rule 139 proceeded to sell the textile unit of the company and the land belonging to the company and in Company Application No. 112 of 1970 the sale made in favour of respondent No. 7 for Rs. 34 0 1 was sanctioned. There was no secured creditor and the court directed that on deposit of 25 per cent of the purchase price the Liquidator should hand over possession of the textile unit and the lands of the company to the purchaser free from all encumbrances. The balance of the purchase price was to be paid by yearly installments. One of the conditions of sale was that if the purchaser sold any of the assets of the company and especially either machinery or lands the liquidator shall execute an indenture of sale in favour of the intending purchase and the purchase price received would be adjusted towards the next following installment. It so happened that the purchaser proceeded to sell a portion of the land which he considered surplus and at that time it transpired that all the immoveable properties of the company were under attachment at the instance of its various creditors. The purchaser thereupon addressed a letter dated March 20 1971 to the Liquidator requesting him to get attachments raised so as to enable him to transfer a marketable title to the intending purchasers of land. Pursuant to this letter the Liquidator has taken out this summons for the afore mentioned relief.

(3.) A notice of the summons was served upon the various respondents. Respondents Nos. 1 and 2 are the officers of the Revenue Department who have levied attachments at the instance of various creditors of the company. Respondents Nos. 3 4 and 5 are the creditors of the company at whose instance respondents Nos. 1 and 2 have levied attachments. Respondent No. 6 is the Textile Labour Association which has obtained certain directions under the Payment of Wages Act and in execution of the directions the first and second respondents have levied attachments.