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1. This Company Appeal is directed against the orders dated 17th July 2004, 27th July 2004 and 30th July 2004 passed by the Learned Company Judge by which the Learned Company Judge dismissed the application of the appellant company, M/S Bakemans Industries Private Limited and accepted the bid of the respondent No. 4, Ceylon Biscuits Limited. The respondent No. 1 is the New Cawnpore Floor Mills Pvt. Ltd., the Respondent No. 2 is the State Industrial and Investment Corporation of Maharashtra (hereinafter referred to as the SICOM) and the respondent No. 3 is the Official Liquidator, Govt. of India, Ministry of Finance and Company Affairs.

2. The brief facts of the case are as follows:

a) One NRI Lead Bank which purported to be a financier of the appellant company M/S Bakemans Industries Limited had obtained an award against the appellant company. In order to enforce that award, Execution Petition No. 288/2003 was filed. The respondent No. 2, SICOM was the judgment debtor No. 3 in the said execution proceedings. Before the said arbitral proceedings were initiated by the NRI lead Bank, the respondent No. 2 SICOM Ltd. exercising its powers under Section 29 of the State Financial Corporation Act, 1951 (hereinafter referred to as the SFC Act) had taken over the assets, namely, building, plant and machinery etc. of the respondent company and in the arbitral award it was directed that the possession thereof should be handed back to the respondent company. Section 29 of the SFC Act reads as follows:
f) The company petition was thus admitted and citations were directed to be published in the newspapers and the Court also appointed an Official Liquidator attached to this Court as the Provisional Liquidator.
g) On coming to know of the aforesaid order, the respondent No. 2, SICOM Ltd. moved CA 414/2004 in the company petition. Notice in the said application was issued returnable on 31st August 2004 In the said application, the respondent No. 2 SICOM Ltd. prayed for a stay of the application of the order dated 6th April 2004 appointing the Provisional Liquidator and directing him to take over the assets, properties and books of accounts of the appellant company. It was pleaded that the respondent No. 2 SICOM Ltd. being a secured creditor was in possession of the unit of Bakemans Industries Pvt. Ltd. situated at Patiala and, therefore, the same should not be disturbed and the Provisional Liquidator be directed not to take possession of the unit from the respondent No. 2, SICOM Ltd. The order was thereafter passed to the effect that possession of the respondent No. 2, SICOM Ltd. of the factory and plant and machinery etc. shall not be disturbed.
h) When the execution application came up for hearing on 19th April 2004, the executing court was informed about the aforesaid developments in the company petition. The execution petition, in these circumstances, was transferred to the company Court. However, while transferring the execution petition in the order dated 19th April 2004 the Court made certain observations which are as follows:
It is an admitted position that M/s SICOM exercised the powers under Section 29 of the State Financial Corporation Act and took over possession of the factory premises of M/s Bakemans Industries Pvt. Ltd. and they continue to be in possession of the said premises. In order to recover the debts as owed to M/s SICOM and other creditors by M/s Bakemans Industries Pvt. Ltd., the process of sale was initiated by this Court. In view of the aforesaid order now passed by the learned Company Judge and since the Official Liquidator has been appointed as the Provisional Liquidator it will be necessary and appropriate to order for placing this matter also before the Hon'ble Company Judge to continue further proceedings in this case also. The matter, accordingly, is transferred to the learned Company Judge to continue the further proceedings and to pass appropriate orders in accordance with law.