1998 (2) TMI 525

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.... by Northland Sugar Complex Limited (hereinafter referred to as the company in liquidation) for financial assistance. On the request of the company in liquidation in December 1993, the bank had agreed to grant term loan limit to rupees one crore, cash credit hypothecation and pledge limit of Rs. 360 lakhs. This facility was agreed to be advanced under the consortium arrangement of the banks comprising State Bank of India Sector 22, Canara Bank Sector 35, Chandigarh, and the petitioner-bank. The limits were allowed and were operated by the company in liquidation. Respondents Nos. 2 to 7 were the directors and guarantors for the return of the loan in question. Respondents Nos. 8, 9 and 10 were the other financial institutions which had a char....

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....bank to seek permission of the company court in accordance with the provisions of section 446 of the Companies Act. The respondents have been served and arguments have been heard. Learned counsel appearing for the respondents fairly stated that there could be no opposition for grant of such permission to the petitioner. The counsel appearing for the official liquidator also stated that he has no objection to the grant of permission sought by the bank. The provisions of section 446 of the Companies Act make it mandatory for any person to seek leave of the company court for pursuing or continuing any suit or legal proceedings against the company in liquidation. The discretion which is vested in the company court has to be exercised in acco....