RISHRA STEEL LIMITED IN LIQUIDATION AND DECCAN TRADERS PRIVATE LIMITED Vs. OFFICIAL LIQUIDATOR AND GOURINANDAN REAL ESTATE PRIVATE LIMITED

JUDGEMENT

(1.) This application being C.A. No.765 of 2011 has been filed by the auction purchaser Company viz. Gourinandan Real Estate Private Limited having its registered office at 71, B.R.B. Basu Road, 5th floor, Kolkata 700001, for the following orders, as mentioned in the Judges Summons taken out on 9th day of August, 2011:-

(2.) The relevant material facts of this case are stated hereunder. The Company viz. Rishra Steel Limited (In Liquidation) had gone into liquidation pursuant to the order of this High Court on 4th June, 1990. On 19th December, 1999 Allahabad Bank, a secured creditor filed a suit against the Company represented by the Official Liquidator for a decree for Rs.4,06,90,548 together with interest on 15th July, 1996 and a decree was passed by this Court for an amount of Rs.3,47,94,232.85 together with interest. The decree provided payment of decreetal amount in 60 equal monthly installments in default the Bank was entitled sale to suit property by public auction or private contract. However, no appeal was preferred nor any installment was paid by the judgment-debtor. On 26th August, 1997 the Allahabad Bank, applied execution of decree. On 12th December, 1997 the High Court appointed the Official Liquidator in the said execution case to take possession of the assets of the Company and directed to take steps for sale of the assets of the said Company. On 19th December, 1997 the aforesaid order was modified by directing that order of sale must be limited to the security of Allahabad bank which has been plant, machinery and other moveable assets as mentioned in the schedule to the decree. Thereafter this Court by its order dated 23rd February, 1998 directed the Official Liquidator to publish an advertisement inviting offers for sale of the assets of the Company in liquidation as a going concern'. Subsequently another order was passed on 10th July, 1998 by this Court wherein the Official Liquidator was directed to sale all the assets of the Company in liquidation as a going concern'. The Allahabad Bank filed two appeals against two aforesaid orders dated 23rd February, 1998 and 10th July, 1998. The Division bench also directed to sale the factory as a going concern'. The order of the Division Bench was questioned before the Hon'ble Apex Court. The Hon'ble Apex Court in disposal of the three civil appeals being 5411-5413 of 2000 passed the following order :-

(3.) However, within 10 weeks as fixed by the Hon'ble Apex Court the Company could not be sold as a going concern'. Therefore, the order of High Court for selling the said Company as a going concern' stood set aside.