M. K. Ranganathan And Another vs Government Of Madras And Others on 20 April, 1955
6. The last contention vehemently urged by the learned Counsel is that the principle laid down by the Supreme Court in Ranganathan v. Government of Madras, 1955 (25) CC 344, reiterated in ICICI v. Srinivas Agencies, 1996 (86) CC 255, no longer holds good after the introduction of Sections 529 and 529-A in the Companies Act of 1956. It is submitted that all the properties and effects of Company shall be deemed to be in the custody of the Court from the date of order of winding up and the Official Liquidator is the custodian on behalf of the Court and he will have exclusive right of disposal of assets. The Official Liquidator takes the interest of the entire body of creditors and more important he holds pari passu charge for the purpose of realising the workmen's dues. The learned Counsel submits that the properties cannot be sold by any secured creditor without reference to the Official Liquidator who is in the position of a co-mortgage and without obtaining leave of the Court.