GODAVARI SUGAR AND REFINERIES LTD Vs. KAMBHAMPATI GOPALAKRISHNAMURTHY

JUDGEMENT

(1.) This is an appeal against the order of Subordinate Judge, Eluru, overruling the objection of the Official Liquidator, the Godavary Sugars and Refineries Ltd., Madras, in an, execution petition filed by the respondents (Decree holders) for sale of the appellants property.

(2.) The Execution petition was opposed by the appellant, the Official Liquidator, on the ground that permission under Sections 171 and 232 of the Indian Companies Act was necessary before the decree could be put into execution.

(3.) The circumstances that have led up to this appeal may be briefly stated. The respondents sold Ac. 1-91 cents of land to the Godavary Sugars and Refineries Ltd., for a sum of Rs. 3,800.00 under a registered sale deed. Since the vendor failed to pay the sale price, the respondents instituted O. S. No. 2 of 1950 on the file or the Subordinate Judges Court, Eluru, for recovery of the money due to them. Pending the suit, the company was wound up on a creditors petition by the High Court of Madras (Original Side) on 29/09/1952 and one Sri K.R. Vepa was appointed the Official Liquidator. Thereupon, the first respondent filed application No. 3425 of 1953 (Original Side) for leave to continue the suit against the company in liquidation on 10/09/1953. This Petition was ordered on the 29/09/1953. The suit ultimately ended in a decrees for the amount prayed for on 18/03/1954. Execution was taken out by the decree-holders in E.P. No. 130 of 1954 on 16/09/1954. The petition was resisted by the Official Liquidator on the ground stated above.