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Issues:
1. Extension of time for registration of a mortgage under section 120 of the Indian Companies Act. 2. Impact of winding up order on the rights of unsecured creditors and the discretionary relief under section 120. 3. Consideration of the appointment of a provisional liquidator in deciding on the discretionary relief. Analysis: 1. The judgment deals with an application seeking an extension of time for the registration of a mortgage under section 120 of the Indian Companies Act. The mortgage in question was dated 15th September 1954, involving a ship named S.S. Ramraja owned by a company. Both the company and the petitioner had sought approval of the mortgage from the Ministry of Transport, Government of India. However, due to an omission, the mortgage was not registered, and the validity of the mortgage itself was not considered a sufficient cause for non-registration. The court found that the grounds for relief under section 120 were not adequately established in the petition, leading to the dismissal of the application for extension of time. 2. The judgment delves into the impact of a winding-up order on the rights of unsecured creditors and the discretionary relief under section 120 of the Indian Companies Act. It references a Division Bench decision of the Madras High Court regarding the rights of unsecured creditors in the event of a winding-up order. The court opined that upon a winding-up order, unsecured creditors acquire rights over the company's properties, including the mortgaged ship, from the date of the winding-up petition presentation. The court highlighted that the discretion to grant relief under section 120 is not bound by the crystallization of unsecured creditors' rights post a winding-up order, emphasizing the court's discretionary power in such matters. 3. The judgment also considers the appointment of a provisional liquidator as a significant factor in determining the discretionary relief under section 120. It notes that the presence of a winding-up petition and the appointment of a provisional liquidator are crucial considerations in deciding whether relief should be granted. The court emphasized that the appointment of a provisional liquidator is a material factor in assessing the circumstances for granting discretionary relief. Additionally, the judgment distinguishes cases based on the pendency of winding-up petitions and resolutions for voluntary winding up, indicating varying considerations for relief based on the stage of winding-up proceedings. Overall, the judgment provides a detailed analysis of the application for extension of time for mortgage registration, the impact of winding up on unsecured creditors' rights, and the relevance of a provisional liquidator in the context of discretionary relief under section 120 of the Indian Companies Act.
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