9911796707
TMI Blog1931 (3) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... 931, on foot of various instruments described in detail in the affidavits filed with the petition and the annexures thereto, and the other two petitioners allege that they are the trustees for the debenture holders under deeds of trust executed and registered by the company.' The petitioners aver that they are mortgagees of the entire assets and property of the company and are desirous of enforcing their rights by bringing an action against ( a ) the company in liquidation, ( b ) six other persons who are puisne mortgagees of the said debentures, and ( c ) the Peoples' Bank of Northen India, another alleged secured creditor, claiming to have a prior charge upon certain stocks and assets of the company for moneys advanced. The petition is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court, and subject to such terms as the court may impose." Under this section the court has a wide discretion in the matter, it may grant leave unconditionally ; it may grant it on terms; or it may refuse it absolutely. But in the exercise of this discretion the court cannot act arbitrarily or capriciously. The principles on which this discretion is to be exercised are well settled and the court has to apply them to the circumstances of the particular case before it. It has been laid down in a series of cases, both in England and India, that a person claiming to be a secured creditor cannot be enforced to prove his debt in liquidation, but he can stand outside the winding-up proceedings and rely upon his security, for whatever it is wort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Lloyds Bank and Mr. Mackay, who claims to be a Receiver appointed by the alleged trustees for the debenture holders, have been present almost at every hearing. Indeed, we find that the prayer for the appointment of the Liquidators was supported by the petitioners, and on the 13th of June, 1900, when the unpaid labourers and workmen were threatening to set fire to, and destroy the stock and the plant at Jagadhri and applications were made by ( a ) certain other creditors, ( b ) the Secretary of State and ( c ) Mr. Henry, Manager of the Mills, for the appointment of provisional liquidators with authority to raise loans for paying off the starving and exasperated employees and to take possession of the assets of the Mills, the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n accordance with the order of the 13th June, 1930, and meeting the expenses of the liquidation incurred up to the date of the suit and also the amount which will be required to defray the cost of the liquidation during the pendency of the suit. It appears that about Rs. 50,000 was raised on loan from the Peoples' Bank and the Punjab Co-operative Bank to pay off the employees, and interest which has accrued due on these loans up to date, is about Rs. 30,000. The other expenses already incurred by the Liquidators amount to Rs. 22,000 approximately, and we think that at least Rs. 25,000 more will be required to cover the cost of the liquidation during the pendency of the proposed suit, excluding, of course, the sum which the Liquidators may h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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