MUNICIPAL CORPORATION Vs. SAFFUN MILLS

JUDGEMENT

(1.) BEING aggrieved by the order dated 31. 8. 2004 passed by District Judge, Ratlam in Civil Suit No. 1-B/2001, whereby the civil suit filed by the appellant for realisation of a sum of Rs. 12 lacs has been returned to the appellant with a direction to present the suit before Board of Industrial and Financial Reconstruction (BIFR/ or Appellate Authority namely Industrial and Financial Reconstruction (AAIFR), the present appeal has been filed.

(2.) SHORT facts of the case are that the appellant filed a suit before the District Judge Ratlam on 27. 8. 2001 for realisation of a sum of Rs. 12 lacs alleging that after winding up of the Unit of respondents an advertisement was published by the respondent No. 3 on 13. 7. 1998, whereby the tenders were invited for sale of surplus land situated at Ratlam. It is submitted that appellant submitted the rates and also deposited a sum of Rs. 12 lacs as the rates submitted by the appellant were highest. When it was found that the title of the respondent is defective, the appellant requested for return of the amount. Since, the amount was not returned, hence suit was filed.

(3.) WRITTEN statement was filed, wherein the claim of the appellant was denied on various grounds. It was also submitted in the written statement that respondent Unit is a sick unit and vide order dated 13. 7. 1998 and 20. 8. 1998, Appellate Authority for Industrial and Financial Reconstruction, New Delhi has declared that the respondent's unit is a sick unit and the official liquidator was appointed by this Court. It was submitted that in view of this the suit is not maintainable.