Appeal Nos
2863 65 of 1993
From the Judgment and Order dated 21291 of the Kerala High Court in CMP No 217090 59691 59791 in MFA No 518 of 1981
WITH Civil Appeal No 2960 of 1993
KK Venugopal G Ramaswamy MN Krishnamani KP Dandapani EMS Anam PN Puri ATM Sampath Pravir Choudhary for the Petitioner Appellant
Shanti Bhushan
Joshph Vellapall vs RKJain A Mariarputham for Ms A Mariarputham and Mrs Aruna Mathur for Mrs Aruna Mathur  Co for the respondents
The Judgment of the Court was delivered by RM SAHAI J
How far could we protect the interests of subscribers who had subscribed to a chit run by a subsidiary company of the appellant ordered to be wound up when allegedly subscriptions were made good by them not merely out of their hard savings but also of sums got by even pledging and selling the jewelleries and ornaments of their wives in the fond hope of getting a lumpsum amount on a future date to meet the expenses of marriages in the family or health hazards of family members and the like is the issue that really bothered us at the hearing of the appeals
About 15 years ago the subsidiary company under winding up diverted the amount of rupees ten crores received by it by way of chit subscriptions to its holding company the appellant resulting in its inability to pay the subscribers when they became entitled to yet the prize amounts
When some of the subscribers approached the High Court and succeeded in getting the subsidiary company wound up the appellant holding company appeared in Court and prayed for an opportunity to be given to it to revive its subsidiary company
That prayer was accepted by a Division Bench of The Kerala High Court in the case of Suarshan Chits India Ltd vs GS Pilai ILR 1983 vol
1 Kerala p 700
The Division 906 Bench approved the scheme of compromise and arrangement under Sec 391 of the 
Consequently it ordered the winding up order to be held in abeyance on condition that the holding company shall execute a security bond to cover subsidiary company s liability to the extent of a sum of Rs 1040 crores owed to its subscribers
It also directed the holding company to pay off that amount within a period of five years
Restriction was also placed on alienation of any property by tile holding company without obtaining prior permission of the Court
Arrangement was made for managing affairs of the appellant company as well
Apart from the Board of Directors an Additional Director was nominated to supervise and keep a watch on the affairs of the company
Since than the appellant company is run as directed by the High Court but neither the subscribers are paid as a body of creditors not the entire amount of rupees ten crores and odd is paid by the appellant to the subsidiary company
True that out of nearly one lakh subscribers
twenty nine thousand and odd subscribers only remain unpaid
But that is hardly satisfactory
Regret is that more than one third of the subscribers remain unpaid even after ten years from the date the High Court ordered the winding up to be in abeyance
Payment of rupees two crores and odd by the holding company which had the benefit of ten crores and odd rupees for the last 15 years which amount by any standard is equivalent to fifty crores of rupees of today we must state is a poor consolation for the holding company to claim that all steps to discharge its obligations is taken
Having noticed in brief how matters have proceeded we shall advert to the dispute which has arisen in respect of an offer now made by the holding company to sell 2079 acres of land for paying the creditors
Whatever that be one situation which has been brought about is its successful attempt in involving many subscribers who had formed themselves into a creditors association and an owner of a factory adjoining the disputed land in litigation which has reached this Court more than once
It is unfortunate that a company which had volunteered to pay ten crores of rupees with in a period of five years has successfully evaded the payment by offering a pittance
From the date of offer in 1987 six ears have elapsed but no amount worth consideration appears to have been paid to the subscribers
We consider it unnecessary to recount in detail the offer made by Ramaswamy Udayar the appellant in the other appeal counter offer made by the creditors association delay in payment by the association extension of time by this Court for payment by the association withdrawal of offer by the holding company in the meantime as the High Court had after detailed examination accepted the offer of creditors association for purchase of disputed land and rejection of the claim of Udayar
Nor do we consider it necessary to deal with rival submission made by learned senior counsel appearing for respective parties although we heard them at length as in our opinion that rupees fifty two lakhs and odd the total amount for which the land 907 has to be sold could hardly be sufficient to relieve the agony of the body of subscribers for whose benefit the entire exercise was undertaken by the High Court
As we have understood the matter there may be a grain of truth in the allegation that it is Estate Dealers with vested interests who are interfering and in fact the amount paid by the creditors association is of estate dealers
It may also
be true that the total membership of the association is not even 5 of the unpaid subscribers
In the said circumstances and taking into consideration the board consensus reached among learned counsel as to what needs to be done we decide the two appeals one filed by the holding company for release of the land and other by Udayar for accepting his bid on the following terms and conditions 1The holding company shall deposit with the official Receiver or Assignee concerned a sum equivalent to the deposited sum on which the High Court was pleased to direct sale deed to be executed in favour of the creditors association together with 25 interest minus the interest if any earned by the deposit made calculated on the deposited amount from the date of deposit till 31st July 1993 within a period of three months from today
2 Out of the amount of sale price of the land already deposited by the creditors Association and the interest if any earned thereon plus the sums of money to be deposited by the holding company under the above term and condition 1 a sum equivalent to the amount deposited by creditors Association together with interest at 25 thereon from the date of deposit upto 31s t July 1993 shall be refunded to the creditors association in lieu of their claim for disputed land being given up
The balance amount shall remain the benefit of general body of creditors of the subsidiary compa 3 The holding company shall pay the entire outstanding de amounts payable to the subscribers who were members of creditors association on the date when their claim applications w decided by the Kerala High Court together with interest there of 12 percent from the date of decision till 31st July 1993 within same period namely three months
This amount too shall deposited with the receiver for immediate payment to those cre 908 tors subscribers for giving discharge of their claims against the subsidiary company
4 In case the above terms and conditions as to deposits to be made by the holding company are complied with
within the period allowed for which no extension of time shall be granted then the disputed land offered for sale by the holding company and purchased by creditor s associations shall stand released in its holding company s favour
If such deposits are not made the sale in favour of creditors company shall stand confirmed
5 An offer was made by the appellant in Appeal No 6614 of 1991 that the land being adjacent to its factory he was willing to pay even rupees five lakhs per acre
Therefore on release if the land is sold it shall be sold as and when such occasion arises for a price not less than five lakhs per acre
The amount so realised shall also be deposited by the holding company with the receiver for distribution among general body of creditors of the subsidiary company in discharge of its obligations to pay of the creditors of the subsidiary company
6 a The receiver shall further take steps to see that the holding company fulfils its obligations and pays the entire balance within a period of one year from 31st August 1993
b In case of failure to clear the dues of all the subscribers it shall be open to any unpaid subscriber to approach the High Court for recalling the order passed by the High Court in 1983 directing the winding up to be put in abeyance
c It shall also be open to the unpaid subscribers to approach the High Court for th e aforesaid reasons mentioned in clause b to take steps to get the amount realised from assets of the holding company
If such an application is made it shall be disposed of by the High Court expeditiously in accordance with law after hearing parties concerned
Both the appeals are decided accordingly
The parties shall bear their own costs
RP Appeals disposed of


Summary:
The appellant was a teacher in the Department of Biochemistry of Rajendra Medical College
He filed an application for his registration as a student in MD
The University forwarded the application to the Principal of Rajendra Medical College
The Principal objected to appellant s registration as he was not posted in any of the teaching posts in Rajendra Medical College
Though the appellant was attached to the Department of Medicine was a Biochemist attached to that Renal Unit dealing with the subject of Biochemistry
The appellant filed a writ petition in the High Court for a direction tot he University to permit him to submit his thesis in MD Medicine examination on the ground that he was a teacher
The University took the stand that the appellant was not a teacher and he was not eligible for training in MD General Medicine
The High Court dismissed the appellants writ petition and held that he was not entitled for admission to the examination in MD as he did not such it 910 his thesis and did not produce a certificate of having undergone satisfactory training
The High Court did not decide on the question whether he held a teaching post or not
The appellant was granted permission to appear for MD Medicine examination after the University was satisfied that the appellant was holding a teaching post The respondent Association filed a writ petition before the High Court challenging the permission given to the appellant to appear for the said examination contending that he was not a teacher and that he did not undergo the necessary training for 2 years and that he did not do housemanship in General Medicine for one year
The High Court allowed the writ petition on the ground that the appellant did not undergo training for 3 years prior to his application to appear for MD Medicine examination
In this writ petition also the High Court did not decide whether the appellant was holding a teaching post
The appellant filed this appeal by special leave against the High Court s judgment
Allowing the appeal this Court HELD  11
On account of the interim order passed by the High Court the appellant appeared for the examination
The High Court has however by the impugned decision restrained the University from declaring his results in the examination
915 G 12
Since the High Court has not gone into the question as whether the appellant was appointed against a teaching post and has proceeded on the footing that he was appointed it is not necessary for this Court to go into the said question
915 F 21
The facts of the case would reveal that this was a dispute relating to an individual and turned on the facts
There was no question of law involved in it
It is not understood how the respondent Association could convert an individual dispute into a public interest litigation
915 H 22 Cases where what is strictly an individual dispute is sought to be 911 converted into a public interest litigation should not be encouraged
The present proceeding is one of the kind
915 H 31
The requirement of the relevant regulation is that the candidate must have done one year s housemanship prior to the admission to the Postgraduate degree in the same subject in which he wants to appear for the examination or atleast six months housemanship in the same Department and the remaining six months in the allied Department
The period of training thus shall be 3 years after full registration including one year of the
housejob912 B 32
According to the rules 4 years teaching experience in the College and the Hospital which is always combined
with practice in the Hospital is considered equivalent to one year s house job experience
In the face of these facts it is difficult to understand the stand taken by the State Government in the present proceedings
916 D 3 3
The University bad on the facts of the case accepted the contention of the appellant that he had completed 3 years  training
It is not understood as to what  state the State has in denying the said factual position
916 B