RAJIVE T Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) By the impugned order passed in Company Application No.22 of 1999, the learned single Judge allowed the first respondent's (State Bank of India) application to grant leave to continue the proceedings in O.A. No.1301 of 1997 on the file of Debt Recovery Tribunal, Bangalore. The learned Judge also prescribed certain terms and conditions in order to ensure that the Official Liquidator is apprised of the result of the proceedings before the Tribunal and the information relating to Company's properties and more important that the dues of workmen are deposited by the applicant and the applicant seeks permission of the Court before the sale of any properties.

(2.) It is against this order respondents 2 to 10 in the Company Application filed the present appeal. Second appellant was the Managing Director of the Company and others were either Directors or Sureties.

(3.) The company was wound up by an order of this Court dated 16-11-1998. While winding up proceedings were pending, the first respondent Bank which is a secured creditor filed O.A. No.1301 of 1997 before the Debt Recovery Tribunal, Bangalore in October, 1997 for recovery of sum of Rs.2.75 crores roughly, from the Company and its guarantors. It is not in dispute that the properties of the Company including plant, machinery and buildings were mortgaged to the first respondent-Bank. The learned single Judge observed that it is open to the secured creditor to remain outside the winding up/liquidation proceedings and proceed against the mortgaged properties and the guarantors and there was no legal objection for allowing the applicant Bank to continue the proceedings in O.A. No.1301 of 1997.