9911796707
TMI Blog1957 (1) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... n order of the District Judge on the liquidation side disposing of an application filed by the official liquidator of the Bombay Thread Mills Company Limited (in liquidation). The facts are that the company went into voluntary liquidation on the 4th October, 1952. Mr. R.L. Khosla, the managing director, was appointed as voluntary liquidator. However, on the 6th October, 1952, a petition was pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Nayyar to the arbitration of Mr. Kishan Chand Sondhi, advocate. The arbitrator delivered his award on the 15th October, 1952, i.e., several days after the company had gone into voluntary liquidation and after the compulsory winding up petition had been instituted. An application was made on the 10th January, 1953, for making the award a rule of the court and this was done on the 20th February ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to Durga Das Nayyar and whether he was entitled to preference over other creditors. The main argument addressed to me has been to the effect that the award has not in any way disposed of any property of the company, but has merely disposed of the assets of the partnership, which were the property of the partnership and not of the company until disposed of by the award. I find, however, that p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, be void." The arbitration proceedings evidently started when the winding up of the company was already foreseen, and the award was actually delivered after both the voluntary winding up of the company and the institution of the petition for compulsory winding up, and once a company has been ordered to be wound up by the court, the winding up takes effect from the date of the petition. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd and decree cannot be split up in this manner, and according to the direction of the learned District Judge it may be still open to Durga Das Nayyar to prove that he is a preferential creditor in respect of at least part of his claims. In my opinion, the matter has been properly decided by the learned District Judge and his direction is quite fair to all concerned. I accordingly dismiss the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
