RAJASTHAN STATE INDUSTRIAL DEVELOPMENT & INVESTMENT CORPORATION LIMITED AND ORS. Vs. THE OFFICIAL LIQUIDATOR AND ORS.

JUDGEMENT

(1.) These two appeals come up against the two orders both dated 04.12.2012, passed by the Official Liquidator rejecting the claim of the appellant - -Rajasthan State Industrial Development & Investment Corporation Limited, Jaipur (hereinafter "RIICO") to an extent of Rs. 18,30,565/ - and the claim of the appellant - -Rajasthan Financial Corporation, Jaipur (hereinafter "RFC") to an extent of Rs. 12,28,49,024/ -.

(2.) Both the appellants, RIICO and RFC advanced secured loans to one Aravali Ispat Ltd., Alwar, now in liquidation. The borrower -company defaulted in repayment of loan and interest amount due as per the terms of the loan agreement. The assets of the company in liquidation were taken over by the appellant -RFC on 30.09.1990 under Sec. 29 of the State Financial Corporation Act, 1951 with the consent of the other secured creditor i.e. RIICO. The borrower -company was ordered to be wound up by the order of the Company Court in Company Petition No. 9/1988 on 22.12.1989. Two applications were in the circumstances moved by the two secured creditors to stay outside the winding up. These were so allowed by the Company Court on 03.03.1989 and 13.09.1989 respectively.

(3.) Subsequently, on the matter coming up before the Company Court on a Company Application No. 36/1994, an order was passed on 04.8.1995 for the sale of the assets of the company in liquidation by the RFC in its possession along with RIICO in consultation with O.L. It was further directed that the amount of sale proceeds be kept by RFC with a nationalized Bank in interest bearing FDR. The assets of the company in liquidation were then sold after due process in consultation with O.L. The sale was confirmed by the Company Court vide order dated 24.08.2001 and an amount of Rs. 110 lacs received as the sale price was kept in a fixed deposit account with the Bank of Baroda, Jaipur.