MAHESHWARI PROTEINS LTD Vs. STATE OF MP

JUDGEMENT

(1.) HEARD on I. A. No. 1957 of 2003.

(2.) THIS is an application made by the Official Liquidator appointed by this Court by order, dated 30. 1. 2003 under Section 446 read with Section 456 (2) of the Companies Act. By this application, a direction is prayed against Bank of India to pay/release a sum of Rs. 15 lakh in favour of Official Liquidator. It is contended that an amount of Rs. 15 lakh which admittedly belongs to company in liquidation, and is lying in the form of FDR (Annexure A to Application I. A. No. 1957 of 2003) with the Bank of India in the name of the company has come in the custody of Official Liquidator as one of the assets of the company in liquidation by virtue of Section 446 read with Section 456 (2) of the Act. It is further contended that since despite request made by Official Liquidator to bank, to remit the said amount together with interest accrued thereon in favour of Official Liquidator, the same has not been done by the bank and, hence, the application to seek the required directions, referred to supra. Since the directions prayed related to bank, the notice of this application was issued to bank. It was served on the bank. Reply is filed by the bank contending inter alia that the said FDR is attached at the instance of ex-workers of the company for realisation of dues payable to them in labour proceedings by the Labour Commissioner. It is also contended that bank being one of the secured creditors has to recover large sum from the company in liquidation ; and, for that purpose, they (bank) have filed a dispute under the DRT Act.

(3.) HEARD Shri Arvind Shukla, Official Liquidator, Shri P. B. S. Nair, learned counsel for respondent Bank of India and Shri V. K. Dubey, learned counsel for MPFC.