Allahabad Bank vs Canara Bank & Another on 10 April, 2000
64. The second class of secured creditors referred
to above are those who come under S. 529A(1)(b)
read with proviso (c) to section 529(1). These are
those who opt to stand outside the winding up to
realise their security. Inasmuch as section 19(19)
permits distribution to secured creditors only in
accordance with section 529A, the said category is
the one consisting of creditors who stand outside
the winding up. These secured creditors in certain
circumstances can come before the Company
Court (here the Tribunal) and claim priority over
all other creditors for release of amounts out of
the other monies lying in the Company Court
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Co. Applications No.32/2016, 35/2016, 7/2018,
13/2018, 16/2018, 17/2018, 21/2018, 22/2018 and
23/2018 in Company Petition No.7 of 2001
(here, the Tribunal). This limited priority is
declared in section 529A(1) but it is restricted only
to the extent specified in clause (b) of section
529A(1). The said provision refers to sub-clause