ESSO EASTERS INDUSTRIES Vs. UNITED COMMERCIAL BANK

JUDGEMENT

(1.) THIS Company Application is made by the Official Liquidator for

(2.) I need only state the case of respondent No. 1. Respondent No. 1 had a security of the companys moveable and immoveable properties towards the amount which the company owed to respondent No. 1. Subsequently on 15th November, 1972 the order of winding up of the company was passed in Company Petition No. 27 of 1971. On 11th April, 1975 respondent No. 1 filed suit being Suit No. 703 of 1975 in this Court for recovering its dues from the company by enforcing its security. On 27th February, 1976 a decree was passed against the company and the decree provided for sale of the secured property for satisfaction of the decretal dues. On 25th April, 1989 the moveable property of the company was sold for Rs. 3. 2 lakhs and the sale certificate was issued on 11th April, 1989. On 24th May, 1985 there was an amendment to the Companies Act whereby sections 529 and 530 were amended and section 529a was added. On 17th April, 1989 the Official Liquidator wrote to the Commissioner for Taking Accounts to keep the sale proceeds of the secured immoveable property separately for being disabused under the provisions of sections 529, 529a and 530 of the Companies Act as amended in 1985. On 24th April, 1989 the Commissioner for Taking Accounts replied to the Official Liquidator stating that he could do nothing in the matter unless order were obtained by the Official Liquidator from the Court. The Official Liquidator therefore submitted his report dated 22nd June, 1989 seeking orders of the Court for what he desired to have by his letter dated 17th April, 1989 to the Commissioner for Taking Accounts. This Court directed the Official Liquidator to take out a Judges summons. Accordingly, this Company Application has been made by the Official Liquidator by taking out the necessary Judges summons and the orders sought for in the Judges summons are those which I have mentioned at that beginning of this order.

(3.) THE respondents are opposing this Company Application and their case is that their vested rights cannot be affected adversely to them by the amending Act which came into force on 24th May, 1985.