PUNJAB NATIONAL BANK Vs. VEDSON ENGINEERS PVT LTD

JUDGEMENT

(1.) THIS petition under section 446 of the Companies Act, 1956, read with rule 9 of the Companies (Court) Rules, 1959, has been filed by the Punjab National Bank for leave to continue its execution proceedings in furtherance to the judgment and decree passed in their favour by the Sub-Judge, Chandigarh, for recovery of Rs. 34,16,808. 65 dated February 28, 1990. This execution petition has been transferred and is now pending before the Debt Recovery Tribunal, Jaipur.

(2.) THE necessary facts are the applicant-bank had given financial advances to the respondent-company, Vedson Engineers Pvt. Ltd. As the respondent-company failed to pay its debts to the bank, the account became irregular and the bank filed a suit for the recovery of the aforestated amount, which was decreed by the court of competent jurisdiction vide judgment and decree dated February 28, 1990. The said judgment is stated to have become final between the parties. Thus, the need for filing the execution petition, which was transferred and now is pending before the Debt Recovery Tribunal at Jaipur, under the provisions of Recovery of Debts Due to the Banks and Financial Institutions Act, 1993.

(3.) THE applicant-bank is a secured creditor and has charge on land, buildings, plant, machinery and other fixed assets of respondent No. 1. Thus, the need for filing the present application.