Case: Allahabad Bank Vs. Arc Holding Ltd. &amp; Ors

ad Bankr is a secured creditor of RishraLimited respondent No. 4 theOn 19th December, 1990 thefiled a suit against the said company represented by the Official Liquidator in the High Court for a decree for Rs. 4,06,90,548/together with interest. On 15th July, 1996 a decree was passed by the Calcutta High Court for3,47,94,232.85 together with interest. The decreepayment of decretal amount in 60 equal monthlyon and from 12th September, 1996; in default the petitioner was entitled tothe suit properties by public auction or private contract. No appeal was preferred from this order nor anywas paid by theOn the 26th August, 1997 theapplied for executiondecree for the aforesaid amount along with interest. It is relevant to refer that the aforesaidwent into liquidation under the order of the winding up dated 4th June, 1990.On 12th December, 1997 the High Court appointed the Official Liquidator in the said execution case, to take possession of the assets of the company and directed it to take steps for the sale of the assets of this company.On 19th December, 1997 this order was modified by directing that order for sale must be limited to the security of Allahabadwhich has been plant, machinery and other moveable assets as mentioned in the schedule to thethe High Court through its order dated 23rd February, 1998 directed the Official Liquidator to publish an advertisement inviting offers for sale of the assets of the company in liquidation as a. Another order dated 10th July, 1998 was passed by the High Court directing the Official Liquidator toall the assets of the company in liquidation as a. On these facts thehas filed these appeals against two orders dated 23rd February, 1998 and 10th July, 1998.

Reasoning:
14. When indisputably the order of winding up made onhad become final and company has becomefor long, even BIFR could not come to its rescue and the attempt of the workers unionresuscitate the company by getting a committee constituted for management was repelled by a Division Bench of the High Court and this Court when the SLP filed by the workers Union came to be dismissed onit would no doubt be ironical and unjust to get order for the sale of the assets of the company as a going concern. But, at the same time to give a last try to the fond hopes expressed on behalf of the erstwhile workers, we consider giving one more chance to have it so done within a strict frame of timel indicate that the reserve price, shall be the amount equal to the total decree including interest which has accrued uptoDecember, 1999 in favour of theand shall also has to pay the balance interest which accrues, till full payment is made. The publication shall also indicate that purchaser has also to pay the liabilities of other claimants in the proceeding for the liquidation of the company.