JUDGMENT

Shah, J.-This appeal is filed against the judgment and order dated 24.12.1996 passed by the Division Bench of the Calcutta High Court dismissing the Appeal No. GA 708 of 1996 arising out of Company Petition No. 316 of 1981 whereby the learned Single Judge had confirmed the auction sale of the property of Messrs. Kolay Biscuits Company Pvt. Ltd.- Company under liquidation.

2. In the present case, it is admitted fact that on 9th July 1965 Messrs. Kolay Biscuits Company Private Limited created a mortgage of its land and building in favour of Union Bank of India for the loan granted in its favour. The factory of the company was closed down in 1980. On 20th March, 1991 under the provisions of the Sick Industrial Companies Act (SICA), the company was declared as sick unit by the Board of Industrial and Financial Reconstruction (for short "B.I.F.R.") and thereafter application under the said Act was rejected by the Board. Appeal filed before the A.I.F.R. was also dismissed. It is the contention of the Bank that on 30th March, 1981, the borrowings by the Company increased to about Rs. 3 Crores and Company executed four balance confirmations in respect of the dues in various accounts