Judgment

Bharucha, J.-The relevant facts need to be set out to appreciate what is involved in these apepals from the judgment and order of a Division Bench of the High Court at Calcutta.

2. In June, 1985 a winding petition was filed against the first re­spondent company, now in liquidation (“the said company”). On 30th September, 1986 a mortgage suit (Title Suit No. 143 of 1986) was filed by the Punjab National Bank and the Bank of Baroda against the said company for recovery of the sum of Rs. 1,94,24,886.37 before the Subordinate Judge, Burdwan. On the same day a hypothecation suit (Suit No. 736 of 1986) was filed by the United Bank of India, the Punjab National Bank and American Express against the said company for recov­ery of the sums of Rs. 20,46,010.31 and 17,87,796.49 in the Calcutta High Court. On the same day, a hypothecation suit (Suit No. 737 of 1986) was filed by the Allahabad Bank against the said company for recovery of the sums of Rs. 29,18,360.65 and 11,64,370.00 in the Calcutta High Court. Again on the same day, the Punjab National Bank and American Express filed a hypothecation suit (Suit No. 738 of 1986) against the said company for the recovery of the sums of Rs. 5,30,38,922.28 and Rs. 2,14,548.00 in the Calcutta High Court. On 3rd December, 1986 the Calcutta High Court passed an interim order in Suit No. 738 of 1986 appointing joint receivers. From time to time, further orders were passed in the same suit for inventory and sale of the hypothecated goods.

3. On 24th April, 1987, in the winding up petition aforementioned, the said company was ordered to be wound up and the Official Liquidator was directed to take possession of the said company’s assets and properties. On 15th May, 1987 an application was moved under Section 446 of the Companies act by the Punjab National Bank and American Express for leave to carry on with their suits; also for transfer of the mortgage suit filed in the Burdwan court to the Calcutta High Court. On 15th May, 1987 the application was allowed and the suit transferred from Burdwan court to the Calcutta High Court was numbered (T.C. Suit No. 5 of 1987). In June, 1987 the Allahabad Bank made an application under Section 446 of the Companies Act for leave to carry on with its suit and on 26th June, 1987 such leave was granted. On 25th November, 1987, the Official Liquidator wrote to the joint receivers in respect of the possession of the assets and records of the said company held by them. On 30th November, 1987 the joint re­ceivers replied to the Official Liquidator; therein they stated that the hypothecated goods could not be sold due to lack of offers.

4. On 11/12th January, 1988 the Punjab National Bank made an application to the Calcutta High Court in the transferred suit praying that the Official Liquidator should be appointed receiver in place and stead of the joint receivers in Suit No. 738 of 1986 with directions to take possession, make inventory and sell the securities both in the transferred suit as well as in Suit No. 738 of 1986. The application was allowed on 12th January, 1988. On 28th April, 1988 the joint receivers wrote to the Official Liquidator confirming that they had handed over possession of the securities they held to him.

5. On 25th November, 1988 the High Court appointed a valuer of the said company’s assets and properties. On 29th June, 1989 an order was passed in the winding up petition giving to the Official Liquidator leave to sell the assets and properties of the said company “by public auction by inviting sealed tenders upon advertisements once in the `The Statesman’ once in `Jugantore’ and once in `Biswamitra’ as per usual terms and conditions of sale”. The sale was to be held on 15th September, 1989 at 2.00 pm in the Court. The Official Liquidator was directed to issue the advertisements at least three weeks prior to the sale and to give notice to the valuer asking him to be present on the date of the sale. The Official Liquidator, the secured cred