OFFICIAL LIQUIDATOR Vs. CORPORATION BANK

JUDGEMENT

(1.) THE order dated 16 -10 -2001 of the Recovery Officer, Debt Recovery Tribunal, Jaipur (for short 'DRT') is under challenge in the instant application.

(2.) A Company, Rajasthan Woollen Limited was directed to be wound up by this Court vide order dated 18 -9 -1987. During the pendency of the winding up proceedings the Official Liquidator (for short 'OL') realised for sum of Rs. 6,57,635.65 from the sale of furniture, shoddy yarn, rags and woollen waste etc. Sum of Rs. 9,395 was also realised afterwards. The realised amount was invested by the OL in FDR with the Corporation Bank (respondent). The respondent -Bank is a secured creditor. The FDR's were directed to be made on the request of the respondent -Bank itself.

(3.) IT is contended by the learned Counsel for the OL that realising the securities outside the winding up proceedings is against the law. In Allahabad Bank v. : [2000]2SCR1102 , it was held that every creditor has a right to appropriately get the share of sale proceeds. Reliance is also placed on International Coach Builders Ltd. v. Karnataka State Finance Corporation, [2003] 10 SCC 4821 and B. Shoes Ltd. v. Indian Overseas Bank Special Leave to Appeal (Civil) No. 3636 of 2003, order -dated 14 -11 -2003.