High Court of Judicature at Allahabad
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In The Matter Of M/S Sunil Salvex (India )Ltd. v. M/S Ram Swarup Oil & Industrial Ltd. - MISC. COMPANY APPLICATION No. 5 of 2000  RD-AH 17150 (4 October 2006)
MISC. COMPANY APPLICATION NO. 5 OF 2000
In the matter of
M/s Sunil Solvex (India) Limited (In Liquidation)
Hon'ble Sunil Ambwani, J.
1. Present Shri S.K. Saxena, Official Liquidator; Shri Rakesh Misra for Allahabad Bank; Shri Anurag Khanna for PICUP and Sri Rajendra Sonkar, Manager (Finance) PICUP.
2. The Official Liquidator informs that plant and machinery of the company (In Liquidation) has been sold. The land and building situated at Hanuman Garhi, Bharthana Bidhuna Road, District Etawah with reserved price of Rs. 53 lacs have been advertised thrice. The advertisements are not receiving any response. In pursuance of the first advertisement, only one tender was received for Rs. 17 lacs which was rejected due to inadequacy of the price.
3. Shri S.K. Saxena, Official Liquidator informs that PICUP has advanced Rs. 1, 65, 24, 978.00 in the year 1986 and Allahabad Bank had advanced Rs. 1,06, 26, 895/- in the year 1988. It is surprising as to how such a huge amount was advanced more than 20 years ago when the plant and machinery was worth only Rs. 10, 80, 000/- and that land and building valued at Rs. 50 lacs is not receiving any response. There is something wrong with the bank and its system in which huge amounts were advanced without proper verification and assessment.
4. Let the Managing Director of the PICUP file his affidavit giving the details of the assessments and approvals before the loan was advanced to the company (In Liq.) and fixing responsibility on the officer who had proposed and sanctioned the loans for such a huge amount. A similar affidavit giving explanation shall also be filed by the Managing Director, Allahabad Bank. Both the authorities shall go through the original records and annexed the assessments and sanctions for the loans, to the Company (In Liquidation).
5. The Official Liquidator has limited money in liquidation account for security, valuation and advertisements. His account cannot be drained out for long in valuation of the properties on which unreasonable amounts were disbursed as loans.
6. In the circumstances, let the PICUP and Allahabad Bank get the concerned assets revalued, advertise and bring the buyers to the Official Liquidator for consideration by the Court. List on 22.11.2006.
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