K. M. THAKER, J.

1. IT was way back in 2001 that the Union representing the workmen of the Company in liquidation had taken out Judge's Summons which was registered as Company Application No.203 of 2001 wherein below mentioned relief/s were prayed for :-

"(a) that this Hon'ble Court may be pleased to direct the Official Liquidator to invite offers by inserting advertisement in such newspapers as this Hon'ble Court deems fit and proper for sale of the properties of Maharana Mills Limited (in liquidation) either by outright sale and/or submitting a scheme under Section 391 of the Companies Act, 1956 or in the alternative offers for scrapping the Mill Company or in such manner as this Hon'ble Court may decide.

(b) this Hon'ble Court may be pleased to approve with or without, the draft advertisement for sale and also the draft terms and conditions of sale annexed with the affidavit in support of this Summons."

2. THE State Bank of Saurashtra, which, now, after merger, is the State Bank of India i.e. present respondent, was one of the respondents in the said application.

During the proceedings which ensued, respondent No.2 Bank had participated in that proceeding and was heard.

3. DURING the pendency of the said application, the Official Liquidator had filed a report dated 29th September 2005, wherein it was mentioned in para 1 of the report that :-

"That, this Hon'ble Court vide orders dated 02.11.2004 and 25.04.2005 was please to permit the Official Liquidator to appoint a Chartered Accountant for the purpose of verification of workers claim lodged by the applicant Union. That, accordingly M/s.C.Joshi and Co., Chartered Accountant, Porbandar, were appointed by the Official Liquidator to verify the workers claim and to submit a verification report. The said Chartered Accountant, after verification of the workers claim with reference to the original records of the Company, have submitted their\verification report vide letter dated 01.08.2005." "The report also declared in the said report of 2005 that the Chartered Accountant had carried out verification of the workers' claim and according to the verification report, it was found that the claim of the workers as admissible under Section 529A of the Companies Act was to the tune of Rs. 44,10,44,272/ It appears from the contents of para 2 of the said report that the Chartered Accountant had taken into consideration the decision of the Court in case of Jubilee Mills while determining admissible claim of the workers and then observed that out of the admissible claim of Rs.44,10,44,272/-, the claim for the purpose of Section 529A of the Companies Act would be to the tune of Rs.35,09,55,245/-, comprising Rs.25, 38,15, 260/- towards the salary, Rs.4, 77, 28, 244/- towards the gratuity and Rs.4, 94,11, 741/- towards retrenchment compensation. However, claim totaling to the tune of Rs.5,46,55,820/-, comprising the claim towards privilege leave, bonus and notice pay would be "ordinary claims" and not for the purpose of Section 529A of the Act i.e. to rank at par with secured creditors. It appears that the said OLR giving the aforesaid details which was filed in Company Application No.203 of 2001 was served on all respondents including State Bank of Saurashtra."

From the record of the said Company Application No.203 of 2001 any objections or any affidavit disputing the said report was not filed though at initial stage an affidavit dated 29th July 2002 was filed by the bank opposing the application.

4. AFTER the above referred report dated 29th September 2005, the Official Liquidator had filed another report dated 30th August 2005 in the said proceedings, wherein the Official Liquidator dealt with the dispute of one M/s. Shree Jagdish Oil Industries Ltd., who claimed to be the tenant of some part of the property of Company in liquidation.

Subsequently, another report dated 23rd January 2006 came to be filed by the Official Liquidator in the said Company Application No.203 of 2001 wherein t