ADITYA MILLS LTD Vs. DESAI STEEL LTD

JUDGEMENT

(1.) THE petitioner carry On business through their divisions, including their steel division known as Kanoria Steels, Bombay. It appears that they supplied goods to one Mr. Kapaldev Agarwal who used to carry on business as the sole proprietor of (1) M/s. Kaydee Rolling mills and (ii) M/s. The New Palghar Industries, at the factory of the said two firms at G-2, MIDC Industrial Area, Poisar, district Thane. The price of the goods so supplied was about Rs. 16,00,000. The said Mr. Kapaldev agarwal expired in August, 1985 leaving behind him his widow Mrs. Rashmi Kapaldev Agarwal and two minor daughters Miss Ritu and Miss sarila, as his only heirs and legal representatives. The petitioners filed two suits in this Court being Suit No. 551 of 1986 and 596 of 1986 against the said two firms for the recovery of the said amount due and payable in respect of the goods sold and delivered, together with interest and costs. The suits are pending in this High Court.

(2.) IT appears that during the pendency of the suits the petitioners also applied for attachment before judgment against the factory premises as also against a certain flat which was in occupation of the said agarwal.

(3.) DURING the pendency of the said two suits the widow of the said kalpaldev Agarwal viz. Mrs. Rashmi Agarwal filed a miscellaneous petition being Misc. Petition No. 123 of 1987 in this Court seeking sanction of this Court to sell certain properties belonging to the deceased and also for assigning the said two firms in favour of the respondent-Company herein. The Court sanctioned the sale but subject to certain terms and conditions. The sanction was given on the basis of a memorandum of understanding, dated February 1, 1986, which is annexed to the petition. The memorandum of understanding shows that the assignor has given a detailed statement of assets and liabilities of the firms belonging to the deceased, which is shown in an annexure as Annexure A. The liabilities and assets of the deceased have been shown in an Annexure B there is a third annexure which shows the list of creditors who have filed suits in the Bombay High Court, City Civil Court at Bombay and Small causes Court at Bombay. The petitioners' names appear in the said list of the liabilities shown in respect of the said two firms. Their names also appear in the list of suits that are pending in this High Court.