1992 (9) TMI 269

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....itioner Rs. 12,763.85 per month towards salaries of the watch and ward staff apart from a sum of Rs. 10,000 to meet the preliminary expenses which may be shared by them equally. Permission has also been sought so as to appoint security guards and payment of their wages with effect from November 29, 1991. It is mainly pleaded in the petition that vide order dated November 29, 1991, passed in Company Petition No. 145 of 1987, Messrs. Punjab United Forge Limited, has been ordered to be wound up and the petitioner has been appointed as liquidator of the company. The petition for winding up was presented on December 16, 1987, by Messrs. Electrodes Industrial Corporation, Mandi Road, Jalandhar City and the formal winding up order was received in ....

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....and ward charges. In addition, it is stated that the petitioner is in urgent need of Rs. 10,000 to defray the day to-day petty expenses connected with the liquidation proceedings of the company. The matter regarding advancing of Rs. 10,000 has already been taken up with the petitioning creditors, Messrs. Electrodes Industrial Corporation, vide letter dated December 30, 1991, but there is no response from them. It is pleaded in the petition that the funds so advanced by these secured creditors would be refunded to them in priority to other debts of the company and as soon as sufficient funds are available with the petitioner as envisaged under rule 292 of the Companies (Courts) Rules, 1959. On the aforesaid facts, the relief, as indicated in....

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....red to look after the premises and that even though the answering respondents were secured creditors they are not liable to pay to the liquidator any fund to meet the expenses of the salaries of the workmen or preliminary expenses and there is no provision of law to that effect inasmuch as the respondents have already suffered a great deal of loss. I have heard learned counsel for the parties and am of the considered view that this application has merit and thus it deserves to succeed. It is well made out from the provisions contained in the proviso to section 529(2) of the Companies Act, 1956, that a direction can be issued to the concerned secured creditors who choose to remain outside the winding up and who do not relinquish their sec....

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....l preservation of his security by the liquidator". In view of the law laid down in the judgment aforesaid, the objection raised by Mr. Suri has, thus, to be repelled. In all fairness to counsel, it shall be appropriate to mention here that he has relied upon a judgment of the Supreme Court in M.K. Ranganathan v. Government of Madras, [1955] 25 Comp. Cas. 344 ; AIR 1955 SC 604, but suffice it to say that all that was held in that case was that the secured creditor is outside the winding-up and that he can realise his security without the intervention of the court by effecting a sale of the mortgaged premises by private treaty or by public auction. It is only when the intervention of the court is sought either by putting in force any attac....