TMI Blog1921 (1) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... n this appeal had been attached at the instance of certain creditors. During the year 1919 the property was repeatedly proclaimed and put up for sale. For reasons with which we are not now concerned the Court had seen fit to fix a reserve price of ₹ 30,000, and at one sale after another no one came forward prepared to bid this price. The judgment-debtor, that is to say, the Company, had in the meantime more than once represented to the Court that there was a reasonable prospect of their being able to dispose of the property to greater advantage by private treaty. The reasonable price suggested in these various petitions to the court was from ₹ 35,000 to ₹ 40,000; but as a matter of fact the Company, although allowed abunda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them in this order. It is contended that the learned District Judge in fixing the 3rd of March, 1920, for the auction sale, without issuing a fresh proclamation, committed a material irregularity and that by reason of this irregularity the appellant has suffered substantial loss. In the view which we take on the question of substantial loss it is not really necessary for us to discuss the question of the alleged irregularity at any length. We may say simply that in our opinion there was an irregularity committed in this matter. As we look at the point, the order actually passed by the Execution Court on the 26th of February, 1920, was in effect an order adjourning the sale sine die. No doubt in passing his subsequent order of the 1st of Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have bid any sum in excess of the sum of ₹ 32,000 actually bid and since paid by the respondent. The Municipal Board of Gorakhpur obviously was not prepared in that month to pay ₹ 40,000, or any other sum, for the property. 3. We, therefore, overrule the objection taken under the Code of Civil Procedure. 4. The point taken under the Companies Act is based upon the wording of Section 232, considered along with Section 168 of the said Act. According to the earlier of these two sections the winding-up proceedings are deemed to commence at the time of the presentation of the petition. In. this case, therefore, these proceedings commenced, within the meaning of this section, with the presentation of the creditor's petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whole, and also at the English authorities in which the expression with which we are concerned has been interpreted, we have no doubt that the words any attachment, distraint or execution put in force must be considered as a whole and that in this particular case the execution with which we are concerned had been put in force within the meaning of this section long prior to the 26th of February, 1920. It was in fact put in force, for the purposes of this section, when this particular property was attached. This plea, therefore, also fails and we dismiss the appeal accordingly with costs. 6. With regard to the Official Liquidator we think it fair to say that the point taken by him under the Companies Act was in our opinion so far arg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sitting as the Judge in winding-up and there had been an application by the Company, either before the actual winding-up order or after it, to stay further proceedings by the decree-holder under this decree, I am quite satisfied after examining the authorities on the subject in England, tint it would have been my duty to have allowed the execution to proceed. For example, where a creditor has issued execution bond fide, that is to say, applying that term to India, has applied for execution, which in this case he did as long ago as 1917, and the Sheriff has been put in possession before the presentation of the petition, the creditor will not, except under exceptional circumstances, be restrained from selling. If a sale were shown to be lik ..... X X X X Extracts X X X X X X X X Extracts X X X X
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