CENTRAL BANK OF INDIA Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THIS Notice of Motion is taken out by the plaintiffs, praying that the Court Receiver, High Court, Bombay be directed to sell the immovable property described in Exhibit "a-1" to the plaint and the plant and machinery described in Exhibit "b" to the plaint with all powers under Order XL, Rule 1 of the Code of Civil Procedure, 1908 either by public auction or private treaty as the Court Receiver may deem fit and proper and pay over to the plaintiffs the net sale proceeds thereof in or towards the suit claim.

(2.) THE suit is a usual bank suit, failed by the plaintiffs bank, namely, Central Bank of India, having its Heads Office at Nariman Point, Bombay and inter alia, having a Branch Office at Jalgaon, against the defendants for various reliefs which are usually claimed in a Bank suit. Defendant No. 1, The Khandesh Spinning and Weaving Mills Co. Ltd. , is a company registered under the Companies Act, having its registered office at Jalgoan and a Branch Office at Bombay. Defendant Nos. 2 to 5 are its Directors, while defendant Nos. 6, 7, and 8 are the guarantors, who have promised repayment of the loan availed by defendant No. 1 and granted by the plaintiffs Bank with respect to diverse credit facilities like Cash Credit Facility, Bills Discounting Facility, Working Capital Term Loan Facility etc.

(3.) IT appears that by an order dated 9th September, 1984 in Company Petition No. 59 of 1984, the 1st defendant company was ordered to be wound up and Official Liquidator, High Court, Bombay was appointed as Liquidator. The plaintiffs were allowed to continue the above suit against defendant No. 1 under section 446 of the Companies Act, 1956 by bringing on record the Official Liquidator as Liquidator of the 1st defendant company. The total claim of the plaintiffs bank against defendant No. 1 is to the tune of Rs. 7,34,04,496. 22.