SAHU JAIN LTD Vs. ROHTAS INDUSTRIES LTD

JUDGEMENT

(1.) This appeal is directed against the judgment and order dated October 30, 1998, passed by the company judge by which his Lordship refused to recall the earlier order dated August 22, 1997, granting leave to both the respondents banks, namely, State Bank of India (hereinafter called the S. B. I.) and the United Bank of India (hereinafter called the U. B. I.) to proceed with their suits before the Debt Recovery Tribunal. The suits being Suit No. 793 of 1984 and Suit No. 627 of 1985 respectively were filed by the S. B. I. and U. B. I. before the Calcutta High Court against Rohtas Industries Ltd. (in liquidation) (hereinafter called the said company). Those suits were previously transferred before the Debt Recovery Tribunal, Calcutta (hereinafter called the said Tribunal) and on such transfer those suits were re-numbered as T. A. No. 256 of 1996 and T. A. No. 45 of 1996 respectively.

(2.) Certain facts, which are relevant to the issue, are noted below : In 1984, one Ajit Kumar Kasliwal filed a winding up petition against the said company in the Patna High Court and it was numbered as Company Petition No. 3 of 1984. Prior to the initiation of the winding up proceeding, both the S. B. I. and U. B. I. had granted certain credit facilities to the said company and as the said company failed to repay its dues the aforesaid two banks had filed two separate suits for recovery of their amount allegedly outstanding. Sahu Jain Ltd., the guarantor of the said company and the appellant herein has been made a defendant in both the suits.

(3.) By an order dated May 22, 1986, the company court passed an order directing winding up of the said company.