( 1 ) IN this application, the applicant-Karnataka State Industrial Investment and Development Corporation Limited (hereinafter referred to as "the Corporation") has made two prayers. Firstly, the applicant has prayed for modification of the order dated 31st of Oct. 1996 made in Company Petition No. 17/1989 to the extent this Court directed the Official Liquidator to forthwith take charge of all the properties and effects of the first respondent-M/s Intermodel Transport Technology System (Karnataka) Limited (hereinafter referred to as "the Company") and to exempt from the direction given in the said order in so far as it relates to the assets taken over by the Corporation pursuant to the mahazar dated 11th of Dec. 1 989 prepared by the Corporation and their sale in favour of the second respondent, and secondly, to permit the Corporation to hand over the assets of the Company to the second respondent pursuant to the sale of the assets of the Company made in favour of the second respondent.

( 2 ) THE facts, which are relevant for the disposal of this application, may be briefly stated as hereunder : (A) M/s. Pradeep Industrial Corporation instituted proceedings in Company Petition No. 17/ 1989 under Section 433 (e) and 433 (f) read with Section 439 of the Companies Act (hereinafter referred to as "the Act") for winding up of the Company on 21st of January 1989 and on the said company petition, this Court directed notice on 16th of Feb. 1989 and thereafter, the Company came to be wound up by this Court by its order dated 25th of March 1994. Subsequently, the said order was recalled on 2nd of June, 1995. (b) It is on record that the Corporation had in old advance a sum of Rs. 76 lakhs to the Company on the security of the assets of the Company, which have been mortgaged/hypothecated to the Corporation. Since the Company failed to repay the loan taken from the Corporation as per the terms and conditions of the loan advanced and committed default in payment of the loan advanced by the Corporation and the Company was due in a sum of Rs. 1,46,36. 070/- as on 15th of Sept. 1989, the Corporation, in exercise of the power conferred on it under Section 29 of the State Financial Corporations Act, 1951 (hereinafter referred to as "the Financial Corporations Act"), took possession of the assets of the Company on 1st of Dec. 1989. Thereafter, the Company had raised a reference before the Board of Industrial and Financial Reconstruction (hereinafter referred to as "the BIFR") in case No. 28/1989 as provided under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "the SIC Act" ). The BIFR, by its order dated 26th of Aug. 1993 recommended for winding up of the Company in the event of the failure of the Company to submit a viable scheme for rehabilitation in exercise of the power conferred on it under Section 20 of SIC Act. In the same order, the BIFR had authorised the Corporation to take steps for the sale of the assets of the Company in its possession subject to the terms and conditions imposed in the said order. A copy of the order dated 26th of Aug. 1993 passed by the BIFR has been produced as Annexure-H to this application. Pursuant to the order Annexure-H, the Corporation notified the sale of the assets of the Company by issuing advertisements in Economic Times (Calcutta Edition) dated 13th of March 1994, Bangalore Edition dated 7th of March, 1994, Ahmedabad Edition dated 8th of March 1994, Madras and Delhi Editions both dated 9th of March 1994 and Prajavani Daily dated 7th of March 1994. In the advertisement issued in the papers, referred to above, it was notified among other things, that the persons interested in the purchase of the assets of the Company , could inspect the land, building and machinery on 18th of March 1994 between 11-00 a. m. and 5. 00 p. m. and should send their sealed offers to the Corporation before 30th of March 1994 (4. 00 p. m.) alon