BIHAR SOLEX PVT LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The question of law raised for consideration is whether a suit or proceeding by a bank or financial institution can be transferred for trial by the company court in a winding-up proceeding in view of the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (in short "the Debts Recovery Act"). An anciliary question also is whether a bank or financial institution can be allowed to seek its remedy as a secured creditor independent of the winding-up proceeding.

(2.) An application has been filed on behalf of the Industrial Investment Bank of India (IIBI) under Section 40 of the Industrial Reconstruction Bank of India Act, 1984, for the sale of the properties mentioned in the schedules and for certain interim orders. The State Bank of India also seeks recall of the order dated March 24, 1995, transferring Money Suit No. 43 of 1992 (State Bank of India v. Bihar Solex Pvt. Ltd.) from the court of the First Subordinate Judge, Aurangabad, for disposal in the present proceeding in terms of Section 446(2) of the Companies Act.

(3.) Section 446 of the Companies Act runs as follows :