VEDSONS ENGINEERS PVT. LIMITED Vs. VEDSONS PRIVATE LIMITED

JUDGEMENT

(1.) THE petitioner is the Ex -Managing Director of M/s Vedsons Engineers Private Limited (in liquidation). Present petition has. been moved invoking Section 446 of the Companies Act, 1956 to seek a direction for protection of property of respondent No. 1 -Company from being sold by respondent No. 2 in execution of decree secured by respondent No. 3 against another Company, namely, Vedsons Private Limited. It is useful to briefly notice the facts and circumstances where under present petition has been filed in this Court.

(2.) RESPONDENT No. 1, namely, M/s Vedsons Engineers Private Limited, A -l, Sector 17 -A, Chandigarh was ordered to be wound up vide order dated 22.5.1996 passed in Company petition No. 27 of 1983. Official Liquidator attached to this Court was appointed as the liquidator of the Company in liquidation. The Liquidator took possession of the assets of the Company on July 23, 1996. Respondent No. 1 - Company challenged the aforesaid order of winding up in Company Appeal No. 17 of 1996. Though initially, an interim stay was granted, however, Company Appeal came to be dismissed vide order dated 20.3.1997. Aggrieved of the dismissal of the appeal, the Company preferred Special Leave Petition before the Hon'ble Supreme Court of India. Hon'ble Supreme Court of India vide its order dated 5.1.1998 granted leave and stayed further winding up proceedings. During the pendency of the proceedings before the Hon'ble Supreme Court, a settlement came to be arrived at between M/s Punjab National Bank and the Company in liquidation. As a result thereof, the Special Leave Petition was disposed of by Hon'ble Supreme Court of India vide order dated 18.7.2006. During all this period, the property of Company in liquidation taken over the Official Liquidator remained in his possession and control. Before the Hon'ble Supreme Court of India, M/s Vedsons Steels and Wires Pvt. Ltd. was impleaded as appellant No. 2. The settlement before Hon'ble Supreme Court was allowed between respondent No. 1 - Company, the Punjab National Bank and another Company - M/s Vedsons Steel and Wires Private Limited, added as appellant No. 2. The Hon'ble Supreme Court also observed that the terms of settlement are only between appellants No. 1 and 2 and the Punjab National Bank and not with reference to other creditors of the Company, if any. In so far as the winding up proceedings are concerned, the same are still pending before this Court.

(3.) RELEVANT extract from the order dated 13.2.2004 passed by respondent No. 2 is quoted here under: