9911796707
TMI Blog1929 (8) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... dation, by certain secured creditors, who have filed a suit in the Court of the Subordinate Judge at Dhanbad on their mortgage of the properties of the company, for leave to proceed with the suit and for an order that the Official Liquidator do make over to the receiver appointed in that suit, the properties mortgaged, of which he is in possession. The suit was filed on the 22nd March, 1929, and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ending, an order was made which took effect on the nth May, provisionally appointing an Official Liquidator, and I apprehend that the Official Liquidator, who is now in possession of the property, took it into his charge shortly after the order was made, as it is now, in his possession. How in those circumstances having regard to the provisions of section 175(6) of the Indian Companies Act, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies Consolidation Act of 1908, and, therefore, English authorities in which it has been interpreted are not available. It is, however, very definite and clear, and I apprehend that its intention is to avoid any question of competition between a receiver and an Official Liquidator and to construe it in such a way as to give preference to a receiver appointed in a suit brought by a secured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receiver appointed by the Court at the instance of the debenture-holders or mortgagees, the Court will ordinarily, in the exercise of its discretion, give preference to the liquidator. In my judgment, the application so far as it asks for leave to proceed with the suit may be allowed, but so far its relates to possession by the receiver it should be refused. As regards costs, it is true that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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