BUCKEYE BATTERIES P LTD Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THIS application has been filed by Sri Khalid Mukhtar son of Late Mukhtar Hamid Ali, resident of Mukhtar Manzil, Civil Lines, Aligarh under Section 446 of the Companies Act, 1956 in the matter of M/s. Buckeye Batteries Private Limited (in liq.) praying to quash the recovery certificate dated 29 -3 -2001 issued by Predeshiya Industrial and Investment Corporation of U.P. Limited (PICUP) to Collector Aligarh ; and to stay proceedings against applicant as a guarantor of financial assistance granted to the company (in liq.).

(2.) BY notice dated 29 -3 -2001, the Court did not find any ground to grant interim relief and directed the petitioner to file a supplementary affidavit annexing a copy of Contract of Guarantee. The required supplementary along with bond of guarantee executed in favour of PICUP in Legal Form No. 2 was filed on 12 -4 -2001. On the same date, the Court granted an interim protection to the effect that no coercive action shall take place against the petitioner for religion of the dues claimed by PICUP and for which certificate of recovery has been sent by PICUP to Collector, Aligarh. On 16 -4 -2001, this Court by detailed order found the prima facie at that stage the claim set up by the applicant can be examined under Section 446 (2)(d) of the Companies Act, 1956 and required PICUP to file a detailed counter -affidavit. Counter -affidavit was filed by PICUP to which a rejoinder -affidavit has also been filed. The facts giving rise to the above application are stated as below :

(3.) A rehabilitation was sanctioned by way of funding of interest and re -schedulement of instalments and to agree for pari passu charge, with Canara Bank for their working capital term loan. Since the performance of the company did not improve, PICUP initiated proceedings under Section 29 of the State Financial Corporation Act and took over he physical possession on 23 -8 -1995. In the meantime a Company Petition No. 29 of 1993 was filed on 22 -11 -1993 and a winding up order was passed on 17 -4 -1995. On 29 -11 -1995, the Court gave order to Official Liquidator to take over the possession of the assets from PICUP. The Official Liquidator took over the possession of the assets on 20 -12 -1995, and prepared inventories.