BANK OF INDIA Vs. SARAF SYNTHETICS RAJ LTD

JUDGEMENT

(1.) THE Bank of India has filed this petition for grant of leave under Section 446(1) to continue/proceed with the pending recovery proceedings in Petition No. 462 of 1995 before the Debt Recovery Tribunal, Delhi, against Saraf Synthetics (Rajasthan) Ltd., the company in winding up (briefly referred to as 'the company'). The applicant -bank is a secured creditor and initially it had filed Civil Suit No. 993 of 1994 against the company and others in the High Court of Delhi (Original Civil Jurisdiction) for the recovery of Rs, 2,41,14,123 with future interest and costs of the suit. On establishment of the Debt Recovery Tribunal, Delhi (for short 'the Tribunal'), the suit was transferred to it where recovery proceedings are pending. In S. B. Company Petition No. 10 of 1992, the winding up of the company has been ordered on November 3, 1995, hence, by this petition the bank is seeking leave to continue recovery proceedings before the Tribunal.

(2.) THE question that calls for decision in this petition is as to whether the pending recovery proceeding against the company before the Debt Recovery Tribunal, relating to realisation of the debts should be allowed to continue/proceed or it should be transferred to this court which is seized of the winding up proceeding.

(3.) I have given my careful consideration to the above submissions and I find much force in them. It would be desirable to take note of the relevant provisions which are contained in Sections 446, 529 and 529A of the Companies Act, 1956 (for short 'the Act').