STATE BANK OF PATIALA Vs. CHHATAR EXTRACTIONS LTD

JUDGEMENT

(1.) The State Bank of Patiala has filed the present application under section 446 of the Companies Act, 1956, seeking leave to proceed with the application filed under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, i. e. , for recovery of Rs. 6,77,75,377 before the Debt Recovery Tribunal, Jaipur.

(2.) The relevant facts are that the petitioner-bank has filed the application for recovery of the above said amount from the respondents before the Debt Recovery Tribunal, Jaipur. During the pendency of the same on the recommendations of the Board for Industrial and Financial Reconstruction, this court ordered winding up of respondent No. I - Chhatar Extractions Ltd. The official liquidator was appointed as the liquidator. The petitioner's claim is that the loan was advanced to respondent No. 1 against hypothecation of raw material, i. e. , rice bran, soyabean, etc. The petitioner has kept a second pari passu charge on the land, building, plant and machinery for the present and future of respondent No. 1. It is prayed that the petitioner may be allowed to continue its proceedings before the Debt Recovery Tribunal, Jaipur.

(3.) Notice was issued to the official liquidator who submitted the reply on behalf of respondent No. 1. He has pointed out that ex-directors of the company have not yet filed the statement of affairs of the company. Even notice has been issued, under section 454 of the Companies Act to the ex-directors. It has no objection to granting of the permission but it is prayed that the liquidator may be allowed to contest the claim. Notice was issued to the other respondents but there was no appearance on behalf of respondents Nos. 2 and 3.