Judgment

P.K. Balasubramanyan, J.—Appellant No.1, The Rajasthan Financial Corporation, is a corporation constituted under Section 3 of The State Financial Corporations Act, 1951 (hereinafter referred to as “the SFC Act”). Appellant No.2, the Rajasthan State Industrial Development and Investment Corporation Limited, is a deemed financial institution by virtue of exercise of power by the Central Government under Section 46 of the SFC Act. The appellants are the secured creditors of M/s Vikas Woolen Mills Ltd. (hereinafter referred to as, “the company-in-liquidation”). By an order dated 14.6.1994, the company judge of the High Court of Bombay ordered the company-in-liquidation to be wound up. The Official Liquidator was directed to take charge of the assets of the company-in-liquidation. On 18.4.1995, the Official Liquidator applied for directions to the company court. He sought permission to get the property valued by a valuer from the panel for valuers of the Official Liquidator, and to sell the properties by public auction. He sought the issue of a direction to the appellants, the secured creditors, to advance Rs.25,000/- each to the Official Liquidator to meet the expenses for sell