M.SAILAJA Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) The points for consideration in these intra Court appeals filed under Order XXXVI Rule 9 of CPC read with Clause 15 of the Letters Patent are as follows:

(2.) The entire case revolves upon the Deed of transfer of leasehold rights dated 30.01.1997 executed by Sethuram Thiyagarajan Engineers Pvt. Limited, the company under liquidation in favour of Lakshmi Narayana Choudhary (deceased). The Appellants herein are the legal representatives of the deceased Lakshmi Narayana Choudhary who was the applicant seeking validation of the said transfer. According to the Appellants, Lakshmi Narayana Choudhary (deceased) did not have knowledge about the pendency of winding up petition filed against STEPL, at the time of entering into the deed of transfer of leasehold rights dated 30.01.1997. According to the Appellants, Lakshmi Narayana Choudhary (deceased) parted with a sum of Rs.30,00,000/- to the respondent Bank on the date of transfer of leasehold rights and therefore, Lakshmi Narayana Choudhary (deceased) cannot be branded as a malafide transferee. It is the case of the Appellants that the company under liquidation as well as its creditors benefitted by the Deed of transfer of leasehold rights dated 30.01.1997 executed in favour of Lakshmi Narayana Choudhary (deceased) and therefore, Lakshmi Narayana Choudhary (deceased) is a bonafide transferee and according to them, the learned Single Judge of this Court ought to have allowed the application seeking for validation of transfer of leasehold rights under section 536(2) of the Companies Act, 1956.

(3.) However, it is the case of the respondents that Lakshmi Narayana Choudhary (deceased), the alleged transferee under the Deed of transfer of leasehold rights dated 30.01.1997 is not a bonafide transferee and further it is their case that Lakshmi Narayana Choudhary (deceased) had full knowledge of the pendency of winding up proceedings and the payment of Rs.30,00,000/- was also not paid by him towards discharge of the loan availed by the company under liquidation. It is also their case that the application filed by Lakshmi Narayana Choudhary (deceased) seeking validation of transfer is hopelessly barred by law of limitation as it has been filed only in the year 2011. It is also their case that the relief sought for in the proposed plaint to be filed against the company under liquidation cannot be granted by the company Court as Lakshmi Narayana Choudhary (deceased) is not a bonafide transferee, entitled for validation of the Deed of transfer of leasehold rights dated 30.01.1997.