BHARAT CHANDULAL NANAVATI Vs. UCO BANK

JUDGEMENT

(1.) BY the judgment and order under appeal the appellants were adjudicated insolvent upon the petition filed by the 1st respondents.

(2.) THE 1st respondents had filed a suit being O. O. C. J. Suit No. 1313 of 1975 against a private limited company called Mona Traders Private Ltd. and the appellants, who were its directors. On 4th March, 1976 the 1st respondents obtained an ex-parte decree. Thereunder the limited company was ordered and decreed to pay to the 1st respondents the sum of Rs. 17,94,156. 68 and interest thereon as therein stated; and the appellants were ordered and decreed to pay to the 1st respondents slightly smaller sums with interest thereon as therein stated. The decree also required that the goods hypothecated to the 1st respondents be sold and the net sale proceeds applied for satisfaction of the 1st respondents claim. The sale was to be effected by the Commissioner for Taking Accounts. It was also ordered that the decrees passed against the appellants were not separate decrees and that they would be entitled to credit for any money paid by the limited company in respect of the decree passed against it as also by reason of the date of the hypothecated goods. Partial satisfcation of the decree was noted on 18th July, 1985 in the sum of Rs. 4,785/-, paid by the Official Liquidator after selling the moveable property of the limited company.

(3.) ON 15th October, 1985 the 1st respondents issued a notice under Order XXI, Rule 22 of the Code of Civil Procedure for execution of the decree and the notice was made absolute on 9th January, 1987.