SIROHI CEMENTS LTD Vs. STATE

JUDGEMENT

(1.) BOTH the aforeaid applications are being disposed of by this common order.

(2.) AN application under Section 446(2) of the Companies Act has been made by RFC and RIICO to remain outside the liquidation proceedings. In this matter a reference was received from the Board for Industrial and Financial Reconstruction under Section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985. The possession of the unit has beentaken over by the RIICO on March 10, 1995. The dues of the RIICO are stated to be to the tune of Rs. 2.09 crores as on October 15, 1995. The RFC has stated that the dues are Rs. 82.52 lakhs as on October 1, 1995,

(3.) THE arguments of learned counsel for the parties have been heard. Learned counsel for the applicant placed reliance on the decision in Central Bank of India v. Elmot Engineering Company [1994] 81 Comp Cas 13 (SC) ; [1994] 4 SCC 159 wherein it Was observed that the object of Section 4,46 is to safeguard the assets of 'the company in winding up against wasteful or expensive litigation as far as matters which could be expedi -tiously and cheaply decided by the company court are concerned.