1955 (3) TMI 12

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....ion of time of the registration of the mortgage, dated the 15th September, 1954, under section 120 of the Indian Companies Act. Messrs. Chandbali Steamer Service Co. Ltd., hereinafter referred to at the company, owns a ship named S.S. Ramraja. By an instrument in writing dated the 15th September, 1954, the company executed a mortgage of S.S. Ramraja, in favour of the petitioner to secure repaym....

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....ssion is not of a nature to prejudice the rights of the creditors and shareholders of the company or that it is just or equitable to grant relief. Sufficient foundation for the grant of relief on these grounds is not laid in the petition. Learned counsel for the applicant relying on Thuppan Nambudiri v. Sankara Menon [1954] 24 Comp Cas 489 , contends that where a condition of relief such as inadve....

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....ct of the properties of the company including S.S. Ramraja and such rights will attach as from the date of the presentation for the winding up petition. In Buckley on the Company Acts, 12th Edition, page 238, the following passage appears: "if the company has gone into liquidation the creditors have acquired rights against property." Under section 167 of the Indian Companies Act an order ....

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.... by the winding up order : See Palmer's Company Precedents, 16th Edition, Vol. II, 418-19. The position is somewhat different where no winding up order has been made and a windnig up petition is pending. Before the winding up order is made the rights of the unsecured creditors are not crystallised but on the making of such order their rights will attach and commence as from the date of prese....