CENTRAL BANK OF INDIA Vs. RECOVERY MAMLATDAR

JUDGEMENT

(1.) THE Central Bank of Indian has taken out this judge's summons for issuance of a direction to respondents Nos. 1 to 4, so as not to proceed further with notice dated December 22, 1988.

(2.) IT appears that Shree Yamuna Mills Ltd. is ordered to be wound up by the order of this court and the assets and properties of the company in liquidation are in the possession of the official liquidator. The applicant bank being the secured creditor has chosen to remain outside the winding up proceedings and has instituted Special Civil Suit No. 681 of 1989 in the court of the Civil Judge, S. D., Baroda, for recovery of the sum of Rs. 4,03,41,680.80. Since various movable and plant machinery of the said mill are hypothecated and/or mortgaged to the applicant bank, it has also prayed for a preliminary decree of redemption of the mortgage and for payment of its dues by selling all the securities.

(3.) IT is the case of the bank that since the bank is the secured creditor of the company in liquidation and since it has decided to remain outside the winding up and since the various assets and properties of the company are mortgaged with the petitioner -bank and since it is seeking recovery of its securities by disposing of such properties no other authority including respondent No. 1 can recover any amount from its securities. In the alternative, it is submitted that even if any amount is found due and payable to respondent No. 7, the petitioner -bank shall do so after it is permitted to dispose of the securities and after the amount realised is received by the bank. It is submitted before the court that the petitioner -bank is ready and willing to abide by the appropriate direction which may be issued by the court as regards payment to be made to respondent No. 7 towards its dues. At this stage, therefore, it is prayed that the respondent should be restrained from proceeding further with the notice of recovery of from taking any action under the provision of the Bombay Land Revenue Code for recovery of the aforesaid amount due and payable to respondents Nos. 6 and 7.