Sri Bahibali Cement Ltd. vs Unknown on 11 February, 2011

              IN THE HIGH COURT OF JUDICATURE AT PATNA
                          COM PET No.13 of 2003
             IN THE MATTER OF SRI BAHUBALI CEMENT LTD.
                           (IN LIQUIDATION)
                                 -----------

68. 11.02.2011 I.A.No.5855 of 2010 has been filed by the ex-

Directors of the company in their capacity as guarantors of

the secured loans granted to the company in liquidation by

the BICICO and State Bank of India. The applicants claim

that they have settled the dues of the BICICO and State

Bank of India by paying a total amount of Rs. 76,89,204/-

and thus they are entitled for repayment of the said amount

from the sale proceeds of the assets of the company lying

in the hands of the Official Liquidator.

In my view, any claim by the secured creditors could

be made only after the claims would be invited by the

Official Liquidator in terms of the provisions of the

Companies Act. The position of the applicants cannot be

higher than that of the secured creditors. Hence, they also

will have to raise their claim before the Official Liquidator

as and when claims are invited by him.

The interlocutory application is accordingly disposed

of with liberty to the applicants to approach the Official

Liquidator as and when he invites claims from the

creditors and others.

(Ramesh Kumar Datta,J.)

Spal/