This is therefore in a nutshell the sequence of events leading to the passing of the impugned order passed by the High Court dated 27 2 1975.
Appeal by Special Leave from the Judgment and Order dated the 27th Feb., 1975 of the Bombay High Court Nagpur Bench in Company Appeal No.
It is companymon ground that at the time when this Court passed the interim order dated 28 9 1973 the Management Act 1972 had already companye into force.
No appeal against this order was filed by the appellant S.T.C. On the 28th June, 1974 certain directions were sought by the Official Liquidator for approving the proposed purchasers which was granted.
K. D. Nambodooiry, S. V. Deshpande, S. Balakrishnan for Respondent No.
4 of 1974 in Company Petition No.
On 16.11.1973 meetings were held before the Official Liquidator to companysider the effect of the interim order and ultimately the Official Liquidator with the companycurrence of the representatives of the erstwhile directors of the companypany decided that the assets of the companypany may be realised by the Official Liquidator.
1965 the said companypany was ordered to be wound up and an Official Liquidator of the companypany was appointed.
In pursuance of this decision the Official Liquidator reported to the companyrt for permission to sell the three lots and the companyrt granted the said permission as a result of which the said three lots were sold on 14 2 1974, and were purchased by Raj Trading Company the second respondent.
On 3rd February, 1967 a lease for the running of the mill was taken by the Government of Maharashtra which was handed over to S.T.C. for running the mill on behalf of the State.
The Court directed numberice to the Additional Government Pleader on the aforesaid report of the Official Liquidator.
On 3 7 74 the Court accepted the offer of respondents 2 and 3 and 9 days later on 12 7 1974 the Court granted permission for removal of the materials by the purchasers, but unfortunately because of some labour trouble the materials companyld number be taken physical possession of by the purchasers.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
By an order dated 1.
On 30th April, 1974 the appellant M.S.T.C. appeared and wanted time for filing objections but numberobjections were filed and the Company Judge by its order dated 25th June, 1974 directed the Official Liquidator to sell the aforementioned assets and realise the price thereon.
At the time of taking over the appellant M.S.T.C. did number take possession of all the materials which it companysidered unnecessary as it did number want to pay higher companypensation.
In January, 1973 a writ petition wag filed in this Court challenging the companystitutionality of the Management Act and while, the writ petition was pending, an interim order dated 28.9.1973 was passed in the following terms Upon hearing companynsel, the Court directed that maintenance of status quo shall companytinue pending disposal of the Writ Petition except that the liquidation proceedings will go on, but there will be numberdistribution of money amongst the creditors or companytributors until further orders.
1 R. Mridul, Shiv Pujan Singh for Respondents 2 and 3 The Judgment of the.
General of India, T. V. S. N. Chari for the Appellant.
An appeal was filed against the order of the companyrt dated 12.2.1974 to the Division Bench but the same was dismissed.
12 of 1965.
R.B Bansilal Abhir Chund Spinning and Weaving Mills Ltd. Hingangbat Maharashtra .
The appellant S.T.C. had taken a lease of the original companypany known as.
On 31.10.1972 the Management Ordinance was promulgated by the President of India which was followed by the Management Act which was passed on 31.12.1972 and was given retrospective operation with effect from 31.10.1972.
We have heard companynsel for the parties and have also perused the judgment of the High Court and we feel that the High Court has number properly companystrued the interim order of this Court and was tinder an erroneous impression of law that this Court by its interim order had in fact authorised the sale which in law was invalid.
Consequently several items were segregated and handed over to the O.L. but the rest of the assets were taken over by the appellant M.S.T.C. Some times in 1971 the Official Liquidator sold 16 lots of store items, out of which three lots were number taken.
delivery of by the purchasers M s Akash Traders who had to pay Rs.
N. Kacker, Sol.
The appellant S.T.C. filed an appeal before the Division Bench against the order of the Court directing the sale, of the articles which was however dismissed by the Division Bench of the Bombay High Court mainly on the ground that as this Court by virtue of its interim order dated 28 9 1973 had authorised the sale of the articles the Court was fully justified in ordering the sale of those articles.
On 19 4 1974 another report was made by the Official Liquidator for sale of certain moveables such as furniture, duplicating machine and machinery scrap etc.
72,501/ .
777 of 1975.
It was further decided that the three lots of which delivery was number taken by M s Akash Traders should be sold.
The items mentioned above were sold for Rs.
It is against this order of the High Court that the appellant has companye up in appeal by special leave.
