Winding up realisation outside liquidation permitted subject to claim filing and court-supervised sale by the official liquidator.

In winding up proceedings, secured creditors or similar claimants may be permitted to realise assets outside liquidation if their claims are lodged with the official liquidator within the stipulated time. The sale of the unit is to proceed by advertisement in consultation with the official liquidator, with each proceeding date intimated and the sale remaining subject to court confirmation. This preserves the company court's control over realisation and the distribution of proceeds while allowing the applicants to proceed outside the winding up framework.

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Issues: Whether the applicants could be permitted to remain outside the winding up proceedings subject to lodging their claims before the official liquidator, and whether the sale of the unit and distribution of proceeds should proceed under the supervision of the court and the official liquidator.

Analysis: The application was considered in the context of the statutory scheme governing company winding up and the reference made under the Sick Industrial Companies (Special Provisions) Act, 1985. In view of the existing order of the apex court requiring joint action with the official liquidator and court supervision over the sale and deposit of proceeds, the applicants were permitted to proceed outside the winding up proceedings, but only after submitting their claims to the official liquidator within the stipulated time. The sale was directed to be undertaken by advertisement in consultation with the official liquidator, with each date of proceedings to be intimated and the sale subject to confirmation by the court.

Conclusion: The applicants were allowed to remain outside the winding up proceedings subject to filing their claims before the official liquidator, and the sale process was directed to continue under the supervision of the official liquidator and the court.

Final Conclusion: The judgment granted procedural permission to the applicants while preserving the company court's control over realization and subsequent determination of liabilities.

Ratio Decidendi: In winding up matters, the court may permit secured creditors or similar claimants to proceed with realization of assets outside liquidation, provided their claims are lodged before the official liquidator and the sale remains subject to court supervision.

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