UNION OF INDIA Vs. AMBICA MILL LTD.

JUDGEMENT

(1.) THE only point left open by our learned brother, Justice S.D. Shah, in his order dated January 22, 1996, was

(2.) BEFORE proceeding further, we would like to record here as to how the matter came up before us. Earlier, First Appeal No. 1607 of 1982 was decided by a Division Bench of this court. Thereafter, M.C.A. No. 2019 of 1995 came to be filed and was dealt with by a learned single judge of this court. In course thereof, the learned judge (S. D. Shah), by his order dated January 22, 1996, worked out an interim arrangement, keeping the said question open and further directing that this question be heard and decided after counsel appearing for both the sides have made their submissions, and, therefore, a peremptory date was fixed. For one reason or the other, the matter could not be taken up by the learned judge and in course of time, the matter came before justice Y. B. Bhatt, and thereafter, before justice J. N. Bhatt. The learned judge (J. N. Bhatt J.) directed the office to obtain necessary orders from the learned Chief Justice for placing the matter before the appropriate Division Bench as the M.C.A. is given in a first appeal which came to be disposed of by a Division Bench.

(3.) THE learned advocate, Mr. Trivedi, appearing for the bank has strongly urged that there are several creditors of respondent No. 1 company and, therefore, the Union of India should stand in the queue and cannot claim any preference. This would be the position even under section 530 of the Companies Act, because the company is being wound up.