Judgment

Quadri, J.-This appeal, by special leave, is directed against the order of the Division Bench of Kerala High Court in M.C.A. No. 11 of 1983 passed on January 29, 1986. That was an application filed before the learned Single Judge of the High Court of Kerala (hereinafter referred to as ‘the Company Court’) by the Official Liquidator against the Indian Bank and respondents Nos. 2 to 5 herein under Section 446(2) and Section 460(4) read with Section 125 of the Companies Act, 1956 (for short ‘the Act’) and Rule 9 of the Companies (Court) Rules, 1959 praying for a declaration that the charge created by the company in liquidation in favour of the Indian Bank against the land and build­ings of the company, being plaint schedule properties in O.S. 169/80 before the Principal Sub-Court, Cochin, was void and a further decla­ration that the preliminary decree passed in the said suit to the extent that it created three charge on the assets of the company was contrary to the provisions of Section 125 of the Act and as such void and unenforceable against the Official Liquidator representing the General body of creditors excluding the decree holder.

2. It will be necessary to notice the f