S M S TRADERS Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THIS appeal has been preferred by the appellant, S.M.S. Traders, against order dated 2nd Aug., 2007, passed by learned Judge in C.A. No.1721/06 in C.P. No.17/04. By the said order, learned Judge rejected the application preferred by the appellant to direct the respondents to grant permission to remove/lift the pulpwood to an extent of 4,500 MT as was lying in the premises of the South India Viscose Limited (SIVIL " hereinafter referred to as the 'Company').

(2.) ACCORDING to the appellant, it supplied pulpwood to the company in liquidation on 6th April, 2000; they entered into a contract for supply of 200 MT of pulpwood and one of the conditions of the contract was that the cost of the pulpwood should be paid within 60 to 70 days from the date of supply. On 6th April, 2002, the applicant wrote a letter to the company to return the pulpwood supplied, as the pulpwood supplied was not accepted. However, learned Judge rejected the said prayer on the ground that the quantity of pulpwood supplied is valued at Rs.49,20,061.19, which is reflected in the balance sheet of the company and the Vice President of the company informed that the payment for the pulpwood supplied would be made shortly. It was observed that only on coming to know about the pending proceeding before BIFR, the applicant filed application in the case filed by the company seeking permission to remove the pulpwood supplied by it.

(3.) WE have heard the parties, noticed the rival contentions and the documents as available on record.