MADHU CHEMICALS CENTRE Vs. STANDARD WOOLLENS LTD.

JUDGEMENT

(1.) Madhu Chemicals Centre, Bikaner, has filed this company petition under section 433(e) read with section 439, Companies Act, 1956 (hereinafter to be called the Act) for the winding up of the Standard Woollens Ltd., Jodhpur (hereinafter called the respondent company). After observing necessary formalities, the petition for winding up was allowed and the respondent company was ordered to be wound-up. On 28 Oct., 1985, it was further ordered that the official liquidator shall proceed to take action in respect of the properties whose possession has not been taken over by the Rajasthan Financial Corporation (in short RFC) under section 29, State Financial Corporation Act, 1951 (hereinafter to be called the Act of 1951). On 20 Dec., 1987, the secured creditors, namely, Rajasthan State Industrial Development and Investments Corporation, Industrial Finance Corporation of India and State Bank of Bikaner and Jaipur also intimated for remaining outside liquidation vide their application dated 29 Aug., 1985.

(2.) On 25 Feb., 1986, the official liquidator moved application, paper No. A8/1-7, for restraining the RFC from disposing of the properties of the respondent company and to allow him to do so as secured creditors cannot remain outside liquidation. On 7 April, 1986, RFC was directed not to auction the properties. RFC filed its reply, paper No. A9/1-10, on 14 May, 1986. By order dated 22 May, 1986, the RFC was permitted to auction the properties of the respondent company. It was ordered on 9 Jan., 1987, that RFC may auction the properties after wide publicity, but the bid will not be accepted without the approval of the court. On 16 Jan., 1987, the official liquidator moved application, paper No. A23/1-5, for deciding the following questions :

(3.) Arguments of the learned counsel for the parties have been heard on these questions. Question No. (a)