J S DAVAR Vs. SHANKAR VISHNU MARATHE

JUDGEMENT

(1.) THIS is an appeal by the Official Liquidators of a private limited company called "the Pioneer Dying House Limited" from the judgment of the learned District Judge Poona, sanctioning a scheme for reconstruction of the company. The facts leading to this appeal may be stated thus:

(2.) IN 1964, a partnership firm by the name of "pioneer Dying House" was formed for the purpose of dyeing, printing and processing Calico cloth. It consisted of three partners D. B. Phatak, G. G. Ketkar and C. S. Phatak. On 1st of November , 1964, the firm was transformed into a Private Limited Company with an authorised capital of Rs. 5,00,000. D. B. Phatak was appointed a Managing Director of the company, while the two other partners, G. G. Ketkar and C. S. Phatkar were appointed Directors. On the 10th of November 1952, a petition for winding up of the company was filed by two creditors of the company, Harihar Ramkrishna Karandikar and Anandibai Karandikar. On the 2nd of February 1954, D. B. Phatak presented a scheme for reconstruction of the company, but the attempt to revive the company was given up as the scheme could not be worked out. On the 13th of August 1954, the learned District Judge, Poona, ordered the company to be wound up.

(3.) THE company had constructed a building called 'pioneer House' on the Laxmi Road,. Poona. D. B. Phatak, the Managing Director of the Company, made a claim that the building was of his private ownership and therefore, on the 6th of June 1955, the Official Liquidators filed Civil Suit No. 835 of 1955 against him and another person for a declaration that the building as well as the land under it were the ownership of the company. The trial Court held by is judgment, dated the 24th of July 1956, that the building belonged to the Company but the land under the building belonged to D. B. Phatak. The Official Liqidators did not challenge that part of the decree which was against the company but D. B. Phatak filed Appeal No. 537 of 1956 in the District Court, Poona, to challenge the correctness of the decision that the building belonged to the company. By his judgment, dated the 24th of April 1959, the learned Extra- Assistant Judge, Poona, dismissed the appeal and confirmed the decree of the trial Court. D. B. Phatak filed Second Appeal No. 925 of 1959 in this Court against the decree of the District Court, but that appeal was withdrawn during the hearing of this appeal.