UNION OF INDIA Vs. AMBICA MILLS LIMITED

JUDGEMENT

(1.) The only point left open by our learned brother Justice S.D. Shah in his order dated 22nd January 1996 was "whether Union of India can claim preference over other creditors because the company is already ordered to be wound up ?

(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, J.), by his order dated 22nd January 1996 worked out an interim arrangement, keeping the said question open and further directing that this question be heard and decided after the counsels appearing for both the sides have made their submission and therefore, a peremptory date was fixed. For one reason on the other, the matter could not be taken up by the learned Judge and in course of time, the matter came before Justice Y.R. Bhatt and thereafter before Justice J.N. Bhatt. The learned Judge (J.N. Bhatt, J.) directed the office to obtain necessary order from the learned Chief Justice for placing the matter before 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.) We have, therefore, taken up the matter for further hearing from the stage where it was left by our learned brother Justice S.D. Shah, after his order dated 22nd January, 1996.