IDBI LTD HAVING ITS REGISTERED OFFICE AT IDBI TOWER W T C COMPLEX CUFFE PARADE MUMBAI-400 005 THROUGH ITS AUTHORIZED OFFICER B SRINIVASA RAO DEPUTY GENERAL MANAGER RECOVERY DEPARTMENT Vs. OFFICIAL LIQUIDATOR HIGH COURT OF BOMBAY NAGPUR BENCH OF MAHARASHTRA EXPLOSIVES LTD

JUDGEMENT

(1.) A Company, viz. Maharashtra Explosives Ltd. (Company under liquidation), incorporated under the Companies Act, 1956 (for short, "the said Act"), having its registered office at Plot No.2, Villa Marina, 924,9 Nelson Square, Nagpur-13, was ordered to be wound up on 12-8-2001 by this Court in Company Petition No.7 of 2001 and the Official Liquidator was appointed with usual powers and duties under the said Act. In compliance of the said order, the Official Liquidator took the possession of the assets, properties and books of accounts of the said Company, being factory assets situated at Kelzar, District Wardha. By an order dated 9-11-2001, the Official Liquidator was permitted by this Court to sell the assets and properties of the said Company situated at Kelzar, District Wardha, and Singroli (M.P.). The Official Liquidator realized a sum of Rs.40 crores by sale of the assets and properties of the said Company. The sale was confirmed by this Court on 3-10-2007 in favour of the highest bidder, namely M/s. Cozy Properties Pvt. Ltd., and the purchaser had deposited the entire amount with the Official Liquidator. However, the proceedings are pending before the Apex Court in SLP involving the question of setting aside the sale, payment of costs and expenses. One more appeal filed by the Collector, Wardha, against the order passed by this Court on the question of unearned income from the sale of the Government properties is pending before the Division Bench of this Court.

(2.) The ICICI Bank Limited, Industrial Development Bank of India (IDBI) and IFCI Limited claiming themselves to be the secured creditors of the Company in liquidation with first charge on the assets and properties, had filed the Original Application No.14 of 2003 on 18-11-2002, invoking the jurisdiction of the Debts Recovery Tribunal under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 ("the RDB Act" for short) on the basis of the hypothecation deeds dated 28-3-1984 and 17-9-1984 and also the mortgage-deeds. The10 Maharashtra Explosives Ltd., a Company under liquidation, and the Official Liquidator, were party-respondent Nos.1 and 2 respectively, whereas the other creditors, viz. Bank of Maharashtra and Bank of India, were party-respondent Nos.3 and 4 respectively, in the said application. The said Original Application was allowed by the Debts Recovery Tribunal by its judgment and order dated 31-8-2005. The operative part of the order is reproduced below :

(3.) The Official Liquidator submitted his report, being OLR No.26 of 2005, seeking permission to invite debts and claims under Section 529, 529A and 530 of the said Act read with Rule 148 of the Company (Court) Rules, 1959 (for short, "the said Rules") from the workmen and the creditors of the Company. This Court granted permission on 8-7-2005. Pursuant thereto, the Official Liquidator issued the advertisements in the leading newspapers, which were published on 14-7-2005. The last date for lodging the claims with the Official Liquidator in terms of the said advertisements, was 16-8-2005.