RICHARDSON AND CRUDDAS LTD Vs. HARIDAS MUNDHRA

JUDGEMENT

(1.) This is an application by the Life Insurance Corporation of India under Sections 397, 398, 399 and 402 and 403 of the Companies Act, 1956, for an order that the Special Officer already appointed hereunder may be authorised to enter into an arrangement with the State Bank of India by which all the accounts now standing in the name of Richardson and Cruddas Ltd., may be consolidated into one account and to operate the said account or any other account that may be opened in the said Bank either himself or through a person or persons duly authorised and to execute all documents necessary for confirming the existing mortgage, hypothecation agreement and cash credit agreement with the said Bank and also to execute such other supplemental documents for the purpose of giving effect to the agreement by which the Government of India will guarantee the indebtedness of Richardson and Cruddas Ltd. to the said Bank to the extent of Rs. 95,00,000/-. There can be no objection to that order being made and I am making an order accordingly.

(2.) The next order that this application seeks is that in case of a dispute between the State Bank and the Special Officer regarding the form of the document or documents to be executed by the Special Officer, the Special Officer may be authorised to have the necessary document or documents settled by the Advocate General of West Bengal and to pay his fees out of the assets of the Company. To this order also there can be no objection and I am making an order accordingly.

(3.) The next order sought by this application is that the Special Officer may be authorised to constitute an Advisory Board.