S M S TRADERS Vs. OFFICIAL LIQUIDATOR OF THE HIGH COURT MADRAS AS THE OFFICIAL LIQUIDATOR IN SOUTH INDIA VISCOSE INDUSTRIES LIMITED SIVIL

JUDGEMENT

(1.) CHALLENGE in this appeal is the order dismissing the application C.A.No.968 of 2008 in C.P.No.17 of 2004 [07.06.2010] whereby the learned single Judge declined to issue direction to the Official Liquidator to pay a sum of Rs.49,20,061/- to the Appellant towards the value of 4500 MTs of pulpwood supplied by them.

(2.) BRIEF facts are that on 06.04.2000, Appellant had supplied pulpwood to the Company in liquidation - M/s.South India Viscose Industries Limited, Coimbatore (SIV Industries) subject to the terms and conditions of supply. Both Appellant and the Company in liquidation entered into a contract for supply of 4500 MTs of pulpwood. Supply of pulpwood is subject to terms and conditions as per the enclosure to the letter dated 06.04.2000. Company reserved the right to reject the part/full load of pulpwood supplied if the supply was found to be nor in accordance with specification. The pulpwood supplied by the Appellant was not accepted. On 06.04.2002, Appellant wrote a letter to the Company in liquidation to return the pulpwood supplied, as the pulpwood supplied was not accepted. On coming to know about the proceedings before the Board for Industrial and Financial Reconstruction [BIFR], on 04.02.2004, Appellant is said to have preferred Application in Case No.71 of 2002 seeking for grant of permission to the Appellant to remove/lift the pulpwood supplied to the Company in liquidation which are lying in the premises of SIV Industries Limited in Sirumugai factory in Mettupalayam, Coimbatore. By the order dated 25.8.2004 in C.P.No.17 of 2004, the said Company - SIV Industries was ordered to be wound up and the Official Liquidator of the High Court became the liquidator of the said Company. Court issued further directions directing the Official Liquidator to take charge of all the assets and effects of the Company.

(3.) C.A.No.968 of 2008 was filed by the Appellant seeking to direct the Official Liquidator to pay a sum of Rs.49,20,061/- to the Appellant towards the value of 4500 MTs of pulpwood supplied by them stating that the Division Bench has concluded in effect that the Appellant's property had been wrongfully sold by the Official Liquidator and that the Appellant is not an ordinary creditor to file their Claim before the Official Liquidator and therefore, the Appellant is entitled to be paid the amount equivalent to the value of 4500 MTs of pulpwood supplied.