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1 - 10 of 34 (0.24 seconds)Section 529A in The Companies Act, 1956 [Entire Act]
The Recovery Of Debts Due To Banks And Financial Institutions Act, 1993
The Companies Act, 1956
Section 13 in The Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 [Entire Act]
Section 529 in The Companies Act, 1956 [Entire Act]
Allahabad Bank vs Canara Bank & Another on 10 April, 2000
We clarify that there is no
inconsistency between the decisio ns in Allahabad Bank Vs. Canara Bank,
(2000) 4 SCC 406 and in International Coach Builders Ltd. Vs. Karnataka
State Financial Corporation, (2003) 10 SCC 482 in respect of the applicability
of Sections 529 and 529-A of the Companies Act in the matter of distribution
among the creditors. The right to sell under the SFC Act or under the
Recovery of Debts Act by a creditor coming within those Acts and standing
outside the winding up, is different from the distribution of the proceeds of
the sale of the security. The distribution in a case where the debtor is a
company in the process of being wound up, can only be in terms of Section
529-A read with Section 529 of the Companies Act. After all, the Liquidator
represents the entire body of creditors and also holds a right on behalf of
the workers to have a distribution pari passu with the secured creditors and
the duty for further distribution of the proceeds on the basis of the
preferences contained in Section 530 of the Companies Act under the directions
of the Company Court. In other words, the distribution of the sale proceeds
under the direction of the Company Court is his responsibility. To ensure the
proper working out of the scheme of distribution, it is necessary to associate
the Official Liquidator with the process of sale so that he can ensure, in the
light of the directions of the Company Court, that a proper price is fetched
for the assets of the company in liquidation.
Section 17 in The Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 [Entire Act]
Rajasthan Financial Corpn. & Anr vs The Official Liquidator & Anr on 5 October, 2005
In our opinion, the ends of justice would be served if the
Official Liquidator is directed to associate the appellant-company in sale of
the assets in terms of paragraph 18(iii) of the Rajasthan State Financial
Corporation Case, ( supra). The appellant through its counsel makes a
statement that in view of the facts and circumstances of the case the
appellant shall not claim any commission on the sale of the assets. The
appeals are accordingly disposed of. No costs. Consequently, connected
C.M.Ps. are closed.