ICICI BANK LTD Vs. SIDCO LEATHERS LTD

JUDGEMENT

(1.) Heard Sri Om Prakash Misra, Advocate for IFCI and IDBI and Shri K.L. Grover, Senior Advocate, assisted by Sri Ramesh Singh for Punjab National Bank.

(2.) The company (in liquidation) was wound up by order of this court dated 16 December 1993, and the Official Liquidator has been appointed as its liquidator. The assets of the company (in liquidation) were sold by the Official Liquidator vide order of the court dated 9 October 1998, and the sale was confirmed on 24 February 1999. By an order dated 9 April 2001, the Official Liquidator was directed to invite claims under Rule 148 of the Companies (Court) Rules, 1959, from the creditors and ex-workmen after issuing advertisement in the newspapers. The Official Liquidator in his Report No. 13 of 2002 has stated that he received claims from IFCI, IDBI as well as other secured creditors, namely, ICICI, Punjab National Bank and other seven ex-workers. The first prayer in the application dated 12 December 2001, under consideration, for taking claim of ICICI Ltd., that of Rs. 4,56,06,736 as on 16 December 1993, on pro rata basis has been considered after hearing counsel for ICICI Ltd. and upheld on 9 January 2002.

(3.) The question with regard to the exclusion of claim of the Punjab National Bank was heard on 9 January 2002 and 16 January 2002. Applicants submitted that Punjab National Bank was not liable to be paid dividend as it has second charge over the movable and immovable current assets. The first charge holder has priority under Section 48 of the Transfer of Property Act over the assets of compant, either before or its winding up; which provides that where a person purports to create by transfer at different times rights in or over the same immovable property, and as such, right cannot all exist or be exercised to their full extent together, each later created right shall, in the absence of a special contract or reservation binding on the earlier transferees, be subject to the rights previously created