H.S. KAMLANI Vs. MAZGAON DOCK LTD

JUDGEMENT

(1.) THIS group of 13 appeals raise a common question of law as to the scope of Section 458 -A of the Companies Act (hereinafter referred to as the 'Act'), and can, therefore, be disposed of by this common judgment.

(2.) THE Official Liquidator is the appellant in all these appeals. Respondents in all these appeals are the debtors of Alcock Ashdown Company (hereinafter referred to as the 'Company'). The Company claims this amount for the repair works of the vessel carried on in 1971 at the instance of the debtors. An order for winding up of this Company was passed on December 13, 1972 in Company Petition No. 86 of 1971 dated August 24, 1971. The appellant was appointed as Liquidator therein.

(3.) THIS order appears to have been preceded by negotiations between the Official Liquidator and the Bank. An understanding was reached between them under which Official Liquidator was to initiate proceedings for the recovery of the book debts as such Official Liquidator and the Bank was to bear the costs of the litigation and their Attorneys M/s. Crawford Bayley and Company were to act for the Official Liquidator in all such proceedings. Over and above the fees payable to the Official Liquidator under Rule 291(4), the Bank was to pay commission at the rate of 10 per cent of the recovery in the contested matters and as such commission for the uncontested matters varies as the Court may fix, obviously for the benefit of the unsecured creditors.