Hemant Gupta, J.

1. This order shall dispose of C.A. Nos. 881 and 845 of 2002.

2. M/s. Northland Sugar Complex Ltd. was a company incorporated and registered under the provisions of the Companies Act, 1956 (hereinafter to be referred as "the Act") having its registered office at Village Randhawa (Dasuya), District Hoshiarpur. The said company was ordered to be wound up on 9-10-1997 vide order passed in C.P. No. 45 of 1996. Before the order of winding up was passed, the applicant-bank claimed that the securities charged to the consortium of Banks as a secured creditors cannot be sold or disposed of in any manner. This Court while passing the order of winding up ordered that the assets and securities charged to the consortium of banks shall be out of the winding up proceedings. It was held to the following effect :

"As regards the objection raised by Mr. Narang, it is directed that the eonsortiurn of Banks shall give details to the Official Liquidator of the assets and securities charged to the consortium of Banks and on verifying and having been satisfied, the Official Liquidator shall keep the assets and securities charged to the Consortium of Bank being secured creditors, out of winding up proceedings."

3. Prior to the winding up, the stock-in-trade ie. finished crystal sugar and molasses were sold in pursuance of the directions of this Court under the directions of a Committee constituted by this Court in Criminal Misc. No. 13130-M of 1996.

4. Applicant in C.A. No. 881 of 2002 is a body corporate constituted under the State Bank of India (Subsidiary Banks) Act, 1959. As a lead member of the Consortium of Banks, it advanced various credit facilities to the company in liquidation. There was an agreement of pledge of goods and assets dated 6-1-1995, Exhibit A/23, and an agreement of hypothecation of goods and assets dated 6-1-1995. Exhibit A/24, wherein a sum of Rs. 360 lacs and Rs. 410 lacs respectively were financed to the company in liquidation on the terms and conditions mentioned therein. Since the company in liquidation failed to make payment to the Banks, the applicant sought permission of this Court under Section 446(1) of the Act to continue and proceed with the application filed by it before Debts Recovery Tribunal, Jaipur, under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. ,This Court granted leave to the applicant to continue and proceed with the proceedings filed before the Debts Recovery Tribunal and to have the same decided in accordance with law. However, it was ordered that any decree/certificate issued by the Debts Recovery Tribunal shall not be executed against the assets of the company without specific permission of this Court at that stage. The Court concluded to the following effect:-

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"For the reasons aforestated, I find no reason as to why permission prayed for be not granted to the applicant-Bank. Consequently, this petition is allowed. The bank is granted permission under Section 446(i) of the Companies Act to continue and proceed with the application filed by it before the Debts Recovery Tribunal and to have the same decided in accordance with law. Leave is granted subject to the condition that any decree/recovery certificate issued by the Debts Recovery Tribunal shall not be executed against the assets of the company without specific permission of this Court at that stage. The petition is accordingly allowed. There shall be no order as to costs."

5. The application filed by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, was allowed by the Debts Recovery Tribunal on 27-6-2002. The operative part of the order dated 27-6-2002 reads as under ;--

"The application for recovery of Rs. 6,86,36,137.41 is allowed and defendants Nos. 1 to 9 are ordered to pay : (i) A Sum of Rs. 1,59,85,174.00 (Rupees one crore fifty nine lacs eighty five thousand one hundred seventy four only) on account of Terms Loan along with pen