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2008 (8) TMI 573 - HIGH COURT OF PUNJAB AND HARYANAProtection of the property of respondent No. 1 company from being sold by respondent No. 2 in execution of the decree secured by respondent No. 3 against another company - Held that:- Proceedings initiated by respondent No. 2 may be valid in so far against the properties and assets of the judgment debtors are concerned, but by no stretch of imagination respondent No. 2 can be permitted to take over or sell the properties of the company (in liquidation) without the company being a debtor much less a judgment debtor. Since it has been brought to the notice of respondent No. 2 that the property sought to be attached belongs to the company (in liquidation) and respondent No. 2 has already issued notice to the official liquidator it has no business to sell the property without affording any opportunity to the official liquidator who represents the company (in liquidation) and has every right to object to the attachment and sale of the property of the company (in liquidation). Even though the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, have overriding effect and the Tribunal/Recovery Officer has exclusive jurisdiction to deal with the property and assets of the judgment debtor, but nonetheless it has no authority under law even under the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, to deal with the property of the company in liquidation not a party or judgment debtor before the Debts Recovery Tribunal and to that extent, this court can exercise a limited jurisdiction to protect the property of the company (in liquidation). In view of the legal position, direct respondent No. 2 to implead the official liquidator as a party to the proceedings before him and afford him reasonable and adequate opportunity to project the case on behalf of the company (in liquidation). Respondent No. 2 shall not proceed to sell any of the properties/assets of the company (in liquidation) without hearing the official liquidator till he decides the question of the status of the property of the company (in liquidation). The official liquidator shall keep this court informed about the proceedings before respondent No. 2.
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