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TMI Blog1994 (6) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... (for short "the ICICI") for grant of leave under section 446(1) of the Companies Act, 1956 (briefly referred to as "the Act"), to continue Suit No. 3485 of 1986 in the Bombay High Court filed against Krishi Engines Limited, the company under winding up (briefly referred to as "the company") and for grant of leave to continue the court receiver appointed in the said suit as receiver of all the hypothecated properties of the company. Company Application No. 55 of 1992 is filed by the ICICI for grant of leave under section 537 of the Act to the court receiver to put up the hypothecated properties for sale upon being empowered to do so by the Bombay High Court. Company Application No. 280 of 1992 is filed by the Industrial Development Bank of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther than the two applicants. He further states that the fair and equitable method will be through the intervention of this court by way of a comprehensive onetime settlement among all the parties including the official liquidator and that if the suits are allowed to be continued in the Bombay High Court, the applicants, viz. , the ICICI and the IDBI, cannot recover anything effectively without the co-operation and consent of other secured creditors like the State Bank of Hyderabad and the Andhra Pradesh Industrial Development Corporation. The other director, Shri V.R. Reddy, opposes the applications stating that : (1)( a )that as secured creditors, the applicants have to participate in winding up proceedings and can recover their dues w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in M.K. Ranganathan v. Government of Madras [1955] 25 Comp Cas 344 ; AIR 1955 SC 604, that the secured creditor can stand outside the winding up proceedings and can realise his security without the intervention of the court by effecting a sale of the hypothecated property by private treaty or by public auction and that in case the creditor can recover the security only through the intervention of the court, he can do so but with the leave of the company court. So I reject this objection of the respondent. The alternative submission of Shri A. Krishna Murty, learned counsel, for the contesting respondents, is that the secured creditors need not have filed the suits but can pursue the remedy under the winding up proceedings and that the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in Case No. 200 of 1987 before the BIFR under section 22 of the Sick Industrial Companies (Special Provisions) Act, the suits could not have been filed and that in any event the receiver could not have been appointed. There is no substance in this plea. Section 22 of the Sick Industrial Companies (Special Provisions) Act bars only execution and coercive process in the execution of decrees but not the filing of suits. Further, the receiver was appointed in Suit No. 3485 of 1986 by the Bombay High Court in December, 1986, while admittedly the proceedings are registered before the BIFR as 200 of 1987. So the appointment of the court receiver cannot be said to be contrary to section 22 of the Sick Industrial Companies (Special Provisions) Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e suits must be transferred from the Bombay High Court to this court as otherwise the defendants who are in Andhra Pradesh will be put to hardship and avoidable loss. I do not agree. The suits were filed in the years 1986 and 1989, respectively, and admittedly the Bombay High Court has territorial jurisdiction as part of the cause of action has arisen there. The applicants have engaged their counsel in the suits and incurred lot of expenditure already in the conduct of the suits. So, it is not open for the respondents at this stage after nearly seven years to plead for transfer of the suits to this court. Mr. Krishna Murty, learned counsel for the contesting respondents, relied on Dr. Subramaniam Swamy v. Ramakrishna Hegde, AIR 1990 SC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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