U.P. STATE ELECTRICITY BOARDversusBANARAS ELECTRIC LIGHT AND POWER CO. LTD.

A                  U.P. STATE ELECTRICITY BOARD
                                 v.
             BANARAS ELECTRIC LIGHT AND POWER CO. LTD.

                                 AUGUST 17, 2001

B                  (A.P. MISRA AND D.P. MOHAPATRA, JJ.]


          Electricity Laws :

           Indian Electricity Act, 1910-Section 6(1), 7-!ndian Electricity (Uttar
C    Pradesh Amendment and Validation Act), 1975-Sections 7, 7 (A)-Company
    supplied electricity to its consumers-UP. Electricity Board purchased the
    undertaking of the company-By virtue of section 7 of the 1910 Act
    undertaking of the company vested in the Board-On the date of take over
    certain dues of the company remained uncollected-Board collected the
D   amount due-Held, not correct-Board to pay the amount realised to the
    liquidators of the company-No provision in the Act requiring licensee to
    deliver the book debts of the company to the Board on vesting of the
    undertaking in the Board

           Appellant Board purchased the undertaking of the respondent-company
E    under section 6 of the Indian Electricity (Uttar Pradesh Amendment and
    Validation) Act, 1975. Consequently the undertaking vested in the Board by
    virtue of Section 7 of the Act. Certain amount was due to the respondent-
    company for the electricity supplied to its consumers before the date of
    vesting in the Board. The Board collected the amount from the consumers
    after vesting of the undertaking. In the meantime, company went into voluntary
F   liquidation and joint liquidators were appointed. Thereafter, the liquidators
    filed an application before the High Court to seek an order against the Board
    to pay the liquidators the amount collected with interest and also the further
    collections till date. The company contended before the High Court that the
    Board was required to make over the amount collected by it from the
G   consumers towards such arrear dues of the company to the liquidators. The
    Board contended that it was entitled to retain and appropriate any amount
    collected by it after vesting of the undertaking since the book-debts of the
    company which were part of the undertaking vest~d in the Board. Single
    Judge of High Court allowed the application of the liquidators holding that
    the book debts of the company were not a part of the undertaking which
H                                       662
   U.P. ST ATE ELEC. BOARD v. BA NA RAS ELEC. LIGHT AND POWER CO LTD. [MOHAPATRA, J.]   663

vested in the Board under Sections 6 and 7(A) of the Act. It directed the                     A
Board to pay the amount collected, to the liquidators. However, it rejected the
plea of the Board for adjustment/set off of the amount against dues of the
company to the Board. Division Bench upheld the order. Hence the present
appeal

        Dismissing the appeals, the Court                                                     B

      HELD: 1.1. The company is entitled to receive from the Board the
amounts realised by the Board from consumers towards charges of the
electricity supplied by the company to them prior to the date of vesting along
with interest. [673-G I
                                                                                              c
      1.2. There is no provision in the Indian Electricity (Uttar Pradesh
Amendment and Validation) Act, 1975 requiring the licensee to deliver the
book debts of the company to the Board on vesting of the Undertaking in the
latter, nor is there any provision in the statute empowering the Board to
deduct the amount of unrealised dues of the company from its consumers                        D
towards electricity supplied to them prior to the date of vesting from the
purchase money to be paid by the Board to the company. Further, there is
no provision in the Act which enables the Board to adjust the said amount
towards security deposits or any other dues. Therefore, the Board cannot
make any deduction by way of adjustment or set off from the amount to be
paid to the company without a statutory mandate in that regard. [673-D-F)                     E
        CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 499-500 of
1983.

     From the Judgment and Order dated 26.8.82 of the Calcutta High Court
in Appeal from Original Order No. 229/80 and C.P.No. 276 of 1980.                             F
     Ranjit Kumar and M.N. Krishnamani, Pradeep Misra, K.L. Mehta Ms.
Meera Mathur, Dhruv Mehta and Ms. Shobha for the appearing parties.

        The Judgment of the Court was delivered by
                                                                                              G
     D.P. MOHAPATRA, J. In these appeals filed by special leave, the
U.P.State Electricity Board (for short 'the Board'), a statutory body constituted
under the Electricity (Supply) Act, 1948 assails the judgment of the Division
Bench of the Calcutta High Court vide its Judgment dated 26.8. 1982 in the
Appeal from Original Order No. 229 of 1980 dismissing the appeal filed by the
Board and confirming the judgment passed by the single Judge.                                 H
     664                       SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

 A          The core question that arises for determination in these cases is whether
     the Board is liable to pay to the liquidators of the company (in
     liquidation)respondent herein the sum of Rs.68,29,636.87 together with interest
     being the amount collected by the Board between the 4th/5th February, 1975
     till 30th April, 1979 towards arrears of electricity charges for the electricity
 B   supplied to co.nsumers during periods prior to the take over of the Undertaking
     by the Board, and all collections made by the Board subsequently on that
     account.

              The factual matrix of the case, which is not in dispute, may be stated
     thus:

c          Banaras Electric Light & Power Co. Ltd. (hereinafter described as 'the
    Company') was the holder of the license dated 6th February, 1925 for generation,
    supply and distribution of electric energy in the city of Banaras under the
    Indian Electricity Act, 1910 (for short 'the Act'). On I st February, 1974 a notice
    under Section 6( I) of the Act was served upon the company notifying the
D intention of the Board to purchase the undertaking of the company. The
   possession of the Undertaking was taken over at midnight between 5th and
   6th February, 1975. The undertaking of the company thereupon vested in the
   Board. On the date of the take over of the Undertaking there were certain
   uncollected dues for the electricity supplied by the company to its consumers
E up to the date of vesting which were thereafter collected by the Board. Up
   to 30th April, 1979 a total sum of Rs.68,29,636.87 had been collected. In the
   meantime the. company had gone into voluntary liquidation and joint liquidators
   had been appointed. On the application filed by the liquidators on 30th
   January, 1980 under Sections 468 and 518 (I) (b) and (4) of the Companies
   Act, 1956 seeking an order against the Board to pay to the liquidators of the
F company the aforementioned sum together with interest thereon and all further
  collections made by the Board from I st May, 1979 till date. The gist of the
  case of the company was that the aforementioned amount was the dues of
  the company from its consumers for the electricity supplied before the date
  of vesting, which the Board collected from the consumers after vesting of the
G undertaking. The company contended that the amount was collected by the
  Board as agent of the company and the Board held the amount as a trustee.
  Therefore, the Board was required in fact and in law to make over the amount
  collected by it and any further sum which it may collect from the consumers
  towards such arrear dues of the company to the liquidators.

H            Contesting the claim of the company the Board took the stand that it
     U.P. STATE ELEC. BOARD''· BANARAS ELEC. LIGHT AND POWER CO. LTD. [MOHAPATR.\, J.J   665

 was entitled to retain and appropriate any amount collected by it after vesting               A
 of the undertaking since the book-debts of the company which were part of
 the undertaking vested in the Board. The further case pleaded by the Board
 was that under the provisions of the Act it was entitled to adjust the said
 amount towards dues of the company towards the cost of the electricity
 supplied and the security deposits of the consumers which the company had                     B
 failed to make over to the Board at the time of vesting.

         The learned single Judge of the High Court on consideration of the case
  of the parties and on interpretation of the relevant provisions of the Indian
  Electricity Act and also the Indian Electricity (Uttar Pradesh Amendment and
  Validation) Act, 1975 (U.P. Act No. 16 of 1975) particularly Sections 6 and 7                C
  (A) thereof held that the book-debts of the company were not a part of the
  undertaking which vested in the Board and, therefore, the Board having
  admittedly realised the arrears of charges which were due from the consumers
. to the company (in liquidation) prior to the date of taking over had no right
  to retain the same and the court in exercise of the jurisdiction vested under
  Section 468 read with Section 518 (l)(b) and (4) of the Companies Act could                  D
  adjudicate the matter and direct that the amount collected by the Board as
  trustee or agent of the Company (in liquidation) should be paid to the
  liquidators. The learned single Judge rejected the plea of the Board for
  adjustment/set off of the amount against dues of the company (in liquidation)
  to the Board. The operative portion of the order/judgment reads as hereunder:                E
         "Therefore, I am making an order in terms of prayer (a) directing the
         respondent Board to pay the said amount of Rs.68,29,636.87 together
         with interest at the rate of 6% per annum from the date of realisation
         of the said bills until payment being the arrears of electricity charges
         supplied to the consumer of the said company in liquidation up to the                 F
         midnight of 4/5th February 1975 as the said sums were collected by
         the respondent Board as trustee or agent on behalf of the company
         in liquidation. Such payment of be made to the Joint Liquidators
         within a fortnight from date. The Joint Liquidators will keep the said
         amount in separate account invested in a nationalised bank on a short
         term deposit for a period not less than 181 days and keep the same                    G
         renewed until further order of this court. The said respondent Board
         will also pay the outstanding arrears of charges which are to be
         collected by them as trustee or agent from the consumers due up to
         the said date of taking over to the Joint Liquidators in terms of this
         order as and when realise and the Joint Liquidators will also keep the                H
      666                      SUPREME COURT REPORTS [2001] SUPP. l S.C.R.

 A            said amount in a separate account in a nationalised Bank invested in
              the same manner as hereinafter stated."

             The Board assailed the said order/judgment in appeal which, as noted
      earlier, was dismissed by the Division Bench of the High Court by the
      judgment which is under challenge in the present appeals. From the discussions
 B in the judgment it is clear that the Division Bench took note of the contentions
      raised by the counsel appearing for the parties, particularly, the question
      whether the book-debts of the company were included in the expression
      undertaking' and as such vested in the Board. Interpreting the provisions of
      Section 7 and 7(A) of the Act as substituted by the Indian Electricity
 C (U.P.Amendment and Validation) Act, 1975 the Division Bench held that there
      was no specific provision for book-debts of the company as a part of the
      undertaking and the licensee did not have to accm1nt for the book-debts or
     unpaid bills on the date of service of notice or at any point of time thereafter.
     Taking note of the provisions of Section 7 which provides that the rights,
     powers, authorities, dues and obligations of the licensee under its licence
D shall stand transferred to the purchaser and such purchaser shall be deemed
     to be the licensee and the provisions in sub-sections 4 and 5 of Section 7(A)
     which empower the purchaser to deduct certain sums from the purchased
     money to be paid to the company, the Division Bench observed that Section
     7(A) (5) lays down the method of adjustment of liabilities of the licensee
E against the compensation money and it does not contain any rule for calculation
    of compensation of the purchase money to be paid to the licensee. The
    Division Bench recorded its finding: "why should the licensee get credit for
    the unpaid bills of the consumers and his liability on account of security
    deposits be reduced unless the outstanding amount of the unpaid bills are
    regarded as property of the licensee?". The Division Bench was of the view
F that no other con,truction will make any sense. The Division B ench took the
    view that if the appellant's argument is to be accepted, the statute must be
    taken to have given the licensee the credit for money which do not belong
   to the licensee; this construction will lead to absurdity and should be avoided.
   The Division Bench was of the opinion that the unpaid bills of the consumers
G are not covered by the expression 'undertaking' and under the Act the
   ·outstanding amounts payable on the bills belong to the licensee. On these
   observations and findings the Division Bench came to the conclusion that in
   the facts of the case the decision of the learned trial Judge directing the Board
   to make the payment collected so far together with interest to the liquidators
   is correct. The Division Bench dismissed the appeal and confirmed the judgment_
H passed by the learned trial Judge and directed the Board to carry out the
   U.P. STATE ELEC. BOARD"· BANARAS ELEC. LIGHT AND POWER CO. LTD [MOHAPATRA, J.]   667

direction givgn by the learned trial Judge within a period of eight weeks from            A
the date.

      Before considering the case on merit it will be convenient to notice
some relevant statutory provisions.

      Section 6 of the Act which deals with 'purchase of undertakings'                    B
enumerates the procedure to be followed when the State Electricity Board or
the State Government or any local authority constituted for an area intends
to purchase an Undertaking. The provisions of the said section so far as
material for the purpose of the present case are quoted hereunder:

      Section 6                                                                           c
      PURCHASE OF UNDERTAKINGS:

        (1)   Where a license has been granted to any person, not being a
              local authority, the State Electricity Board shall-

        (a)   In the case of a license granted before the commencement of the
                                                                                          D
              Indian Electricity (amendment) Act, 1959 (32 of 1959) on the
              expiration of each such period as is specified in the license, and
        (b)   In the case of a license granted on or after the commencement
              of the said Act, on the expiration of such period not exceeding             E
              twenty years and of every such subsequent period, not exceeding
              ten years, as shall be specified in this behalf in the license;

       Have the option of purchasing the undertaking and such option shall
       be exercised by the State Electricity Board serving upon the licensee
       a notice in writing of not less than one year requiring the licensee to            F
       sell the undertaking to it at the expiry of the relevant period referred
       to in this sub-section.

                              xxx                  xxx                      xxx

       (4) If the State Electricity Board intends to exercise the option of
       purchasing the undertaking under this section, it shall send an                    G
       intimation in writing of such intention to the State Government at least
       eighteen months before the expiry of the relevant period referred to
       in sub-section( I) and if no such intimation as aforesaid is received by
       the State Government the State Electricity Board shall be deemed to
       have elected not to purchase the undertaking.
                                                                                          H
    668                     SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A                              xxx                  xxx                  xxx

          (6) Where a notice exercising the option of purchasing the undertaking
          has been served upon the licensee under this Section, the licensee
          shall deliver the undertaking to the State Electricity Board, the State
          Government or the local authority, as the case may be, or to such
B         officer as the Board, the Government or the local authority may appoint
          in that behalf on the expiration of the relevant period referred to in
          sub-section (I) pending the determination and payment of the amount
          referred to in sub-section (7);

              Provided that the licensee shall, in addition to the said amount,
c         be entitled to interest thereon at the Reserve Bank rate ruling at the
          time of delivery of the undertaking plus one per centum for the period
          from the date of delivery of the undertaking to the date of payment
          of said amounts.

          (6-A) After the service upon the licensee under this Section of a
D
          11Qtice by the State Electricity Board exercising the option of purchasing
          the undertaking-

           (a) the licensee shall prepare and furnish to the Board within a
               period of three months from the date of service of such notice
               an inventory of all lands, buildings, works, materials and plant
E
               belonging to the undertaking at the time of the service of such
               notice and shall be bound to allow the Board or its agents or
               the Electrical Inspector to the State Government or any officer
               subordinate to him authorised by him in that behalf, at all
               reasonable times during the pendency of the said notice and
F              until delivery of the undertaking to the Board under sub-section
               (6), to enter upon such lands, buildings and works, and inspect
               such lands, buildings, works, materials and plant and prepare an
               inventory thereof or to check the correctness of the inventory
               furnished by the licensee;

G         (b)   the licensee shall be bound to keep all his lands, buildings,
                works, materials and plant belonging to the undertaking in as
                good condition as they were at the time of the service of such
                notice, subject only to changes caused by reasonable wear and
                tear or by irresistible force, and to allow the said Board and its
                agents, or the Electrical Inspector to the State Government or
H
   U.P. STATE ELEC. BOARD"· BA NA RAS ELEC. LIGHT AND POWER CO. LTD. [MOHAPATRA, J.]   669

              any officer subordinate to him authorised by him in that behalf,               A
              at all reasonable times during the pendency of the said notice
              and until delivery of the undertaking to the Board under sub-
              section (6), to enter upon such lands, buildings, and works and
              inspect the condition thereof and the condition of the said
              material and plant;
                                                                                             B
        (c)   the licensee may use the said lands, buildings, works, materials
              and plant as a person of ordinary prudence would use them if
              no such notice as aforesaid were served, but he shall not pull
              down or damage any such buildings, works, material or plant or
              commit any other act which is destructive thereof or permanently
              injurious thereto of remo.ve any such materials or plant from the              C
              undertaking;

        (d)   the licensee shall be liable to account to the Board for all such
              lands, buildings, works, materials and plant, as existed at the
              time of the service of such notice.
                                                                                             D
       (7) Where an undertaking is purchased under this section, the
       purchaser shall pay to the licensee an amount determined in accordance
       with the provisions of Section 7 and Section 7-A as substituted by
       the Indian Electricity (U.P. Amendment and Validation) Act, 1975.

      Section 7 of the Act which makes the provisions regarding vesting of                   E
the undertaking in the purchaser reads as follows.

       7. Vesting of the undertaking in the purchaser:- Where an undertaking
       is sold under section 5 or section 6, then upon the completion of the
       sale or on the date on which the undertaking is delivered to the
       intending purchaser under the sub-section (3) of section 5 or under                   F
       sub-section (6) of section 6, as the case may be, whichever is earlier-

           (i) the undertaking shall vest in the purchaser or the intending
       purchaser, as the case may be, free from any debt, mortgage or similar
       obligation of the licensee or attaching to the undertaking:

            Provided that any such debt, mortgage or similar obligation shall
                                                                                             G
       attach to the purchase money in substitution for the undertaking.

           (ii) the rights, powers, authorities, duties and obligations of the
       licensee under his license shall stand transferred to the purchaser and
       such purchaser shall be deemed to be the licensee:                                    H
    670                        SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A               Provided that where the undertaking is sold or delivered to a State
            Electricity Board or the State Government, the license shall cease to
            have further operation."

          By the U.P. Act No. 16 of 1975 the following changes were made in
    Section 7 of the principal Act :
B
          "4. Amendment of Section 7 - In Section 7 of the principal Act,-

            (i)    In sub-section (I), for the proviso to clause (i), the following
                   proviso shall be substituted, namely :

               "Provided that any such debt, mortgage or similar obligation shall
c          attach to the amount payable for the undertaking;"

            (ii)   in sub-sections (2), (3) and (5), for the words "purchase money'',
                   wherever occurring, the word "amount" shall be substituted."

          Section 7A contains the provisions regarding determination of the
D purchase price. The said section as substituted by the U.P. Act 16 of 1975,
    so far as material for the purpose of the case, is quoted hereunder:

           "Section 7A Determination of amount (I) where an undertaking of a
           licensee is sold under sub-section (I) of section 5 or is purchased
           under section 6 the amount payable therefor shall be determined as
E          hereinafter provided.

           (2) The gross amount payable to such licensee shall be the aggregate
           value of the amounts specified below :
           (i)     the book value of all completed works in beneficial use pertaining
F                  to the undertaking and taken over by the State Electricity Board,
                   the State Government or· 1ocal authority, as the case may be
                   (excluding works paid for by consumers) less depreciation
                   calculated in accordance with the Sixth Schedule read with the
                   Seventh Schedule to the Electricity (Supply) Act, 1948.
G          (ii)    The book value of a!i works in progress taken over, excluding
                   works paid for b) the consumers or prospective consumers;
           (iii) The book valu.: of all stores, including spare parts taken over,
                 and in the case of used stores and spare parts, if taken over,
                 such sum as may be decided upon by the Special Officer referred
H                to in sub-section (6) hereinafter referred to as the special officer;
u.r. ST ATE ELEC. BOARD,. 13 '\NARAS ELEC LIOllT ·\ \lJ \'OWER co. LTD. [MOHAPATRA. J]   671

     (iv) The book value of all other fixed assets in use on the date of                       A
          vesting under Section 7, hereinafter referred to as the vesting
          date, and taken over, less depreciation calculated in accordance
          with the said schedules;

     (v)     The book value of all plants and equipments existing on the
             vesting date, if taken over but no longer in use owing to wear                    B
             and tear or to obsolescence, to the extent such value has not
             been written off in the books of the licensee, less depreciation
             calculated in accordance with the said schedules;

     Explanation:- The book value of any fixed asset means its original
     cost, and shall comprise-                                                                 C
      (i) the purchase price paid by the licensee for the asset, including
          the cost of delivery and all charges properly incurred in erecting
          and bringing the asset into beneficial use as shown in the books
          of the Undertaking;
                                                                                               D
     (ii)    the cost of supervision actually incurred, but not exceeding_
             fifteen percent of the amount referred to in paragraph (I);

     Provided that before deciding the amount under this sub-section the
     licensee shall be given an opportunity by the Special Officer of being
     heard, after giving him a notice of at least 15 days therefor.                            E
      (3) A sum equal to I 0 percent of the amounts assessed under
          clauses (i) to (iv) of sub-section (2) shall be paid to the licensee
          in respect of compulsory purchase under section 6,

     (4)      When any asset is acquired by the licensee after the expiry of                   F
            ·the period to which the latest annual accounts relate, the book
             value of the asset shall be such as may be decided upon by the
             Special Officer;

            Provided that before deciding the book value of any such asset,
            the licensee shall be given an opportunity by the special officer                  G
            of being heard, after giving him a notice of at least 15 days
            therefor.

     (5)    The purchaser shall be entitled to deduct the following sums
            from the gross amount payable under the foregoing sub-section
            to a licensee-                                                                     H
    672                     SUPREME COURT REPORTS [2001) SUPP. I S.C.R.

A                (a) the amount, if any, already paid in advance;

                 (b)where the purchaser is the State Electricity Board the amount
                 due, if any, including interest thereon, from the licensee to the
                 Board, for energy supplied by the Board before the vesting date.

                 (c) All amounts and arrears of interest, if any, thereon, due from
B
                 the licensee to the State Government or the State Electricity
                 Board;

                (d) The amount, if any, equivalent to the loss sustained by the
                purchaser by reason of property or rights belonging to the
c               undertaking not having been handed over to the purchaser, the
                amount of such loss being deemed to be the amount by which
                the market value of such property or rights exceeds the amount
                payable therefor under this section, together with any income
                which might have been realised by the purchaser, if the property
                or rights had been handed over on the vesting date;
D
                (e) The amount of all loans due from the licensee to any
                corporation as defined in the U.P. Public Moneys (Recovery of
                dues) Act, 1972, and arrears of interest, if any, thereon;

                (t) All sums paid by the consumers by way of security deposit
E               and arrears of interest due thereon on the vesting date, insofar
                as they have not been paid over by the licensee to the purchaser,
                less the amounts which according to the books of the licensee
                are due from the respective consumers to the licensee for energy
                supplied by him before that date.
F               (g) All advances from consumers and prospective consumers,
                and sums which have been or ought to be set aside to the credit
                of the consumers, insofar as such advances or sums have not
                been paid over by the licensee. to the purchaser;

                (h) The amounts remaining in Tariffs and Dividends Control
G               Reserve, contingencies Reserve and the Development Reserve,
                in so far as such amounts have not been paid over by the
                licensee to the purch_aser.

          (6)   The State Government shall appoint, by order in writing, a person
                having adequate knowledge and experience in matter relating to
H
    U.P. STATE ELEC. BOARD" BANARAS ELEC. LIGHT AND POWER CO. LTD. [MOHAPATRA, J J   673

              accounts, to be Special Officer to assess the net amount payable         0
                                                                                           A
              under this section to the licensee, after making the deductions
              mentioned in this Section.
        (7)(a) The Special Officer may call for the assistance of such officers
        and staff of the State Government or the State Electricity Board or the
        licensee as he may deem fit in assessing the net amount payable.                   B
        (b )the Special Officer shall have the same powers as are vested in a
        Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908),
        when trying a suit, in respect of the following matters-

        (i)   enforcing the attendance of any person and examining him on                  C
              oath;
         (ii) compelling the production of documents; and
         (iii) issuing commissions for the examination of witnesses.

        The Special Officer shall also have such further powers as may be                  D
        specified by the State Government by notification in the Gazette.

        (8) Where the gross amount payable to the licensee is equal to or less
        than the total amount to be deducted under this section no payment
        shali be made to the licensee by the purchaser."

        On a close reading of the provisions noted above it is clear that no E
provision is made in the Act requiring the licensee to deliver the book debts
of the company to the Board on vesting of the Undertaking in the latter, nor
is there any provision in the statute empowering the Board to deduct the.
amount of unrealised dues of the company from its consumers towards the
electricity supplied to them prior to the date of vesting from the purchase F
money to be paid by the Board to the company. Further, there is no provision
in the Act which enables the Board to adjust the said amount towards
security deposits or any other dues. The plea of adjustment/set off is untenable.
The field being covered by statute the exercise has to be done strictly in
accordance with the statutory provisions. It is not open for the Board to make G
any deduction by way of adjustment or set off from the amount to be paid
to the company without a statutory mandate in that regard. It follows therefore
that the company is entitled to receive from the Board the amounts realised
by the latter from consumers towards charges of the electricity supplied by
the company to them prior to the date of vesting. The Division Bench has
also referred to the correspondence between the Board and Company indicating H
    674                      SUPREME COURT REPORTS [2001] SUPP. I S.C.R.

A that the Board was conscious of its liability to hand over a ~sum of                  Iii
    Rs.68,29,636.87 to the company.

           The High Court was right in allowing the petition filed by the liquidators
    of the company (in liquidation) anrl directing the Board to pay the amount
    realised by it with interest to the liquidators.
B
          In the result, the appeals being devoid of merit, are dismissed. The
    hearing fee is assessed at Rs. I0,000.

    N.J.                                                        Appeals dismissed. .