This is an application to vary the order of the Official Liquidator of the Andhra Paper Mills Co., Ltd., (in liquidation) disallowing the claim of the applicant to have a charge over the movable assets of the company for a sum of Rs. 1,01,172-15-2. The liquidator admitted that the amount claimed was due, but he disallowed the claim to rank as secured creditor on the ground that the document creating the security was not registered with the Assistant Registrar of Joint Stock Companies, Cocanada, as required by section 109 of the Indian Companies Act. This order further states that in any event, the amount of Rs. 34,000 included in the claim representing payment made on 15th July, 1947 to Messrs. Natwarlal Shamaldas and Co. cannot be treated as a secured debt. No grounds for the same are however mentioned in the order.

The applicant Tansukhrai M. Karundia, claims to have advanced the aforesaid sums in circumstances set out below. The Andhra Paper Mills would appear to have issued debentures to the extent of eleven lakhs. By about 1945 interest on the same had accumulated to another six lakhs. The company having made default in payment under the terms of the debenture document,