Secured creditor locus standi upheld in challenging liquidator's quantification of workmen's dues and asset distribution.

The Companies (Court) Rules, 1959 require the liquidator to investigate, admit or reject claims, and communicate his decision, while Rule 164 provides an appeal where a creditor's claim is rejected in whole or in part. The Court held that the expression "any person aggrieved by any act or decision of the liquidator" in section 460(6) of the Companies Act, 1956 is broad enough to include a secured creditor affected by quantification of workmen's dues. Because that quantification could alter asset distribution and the amount available to secured creditors, the bank had locus standi to seek review of the liquidator's decision, and the objection to maintainability was rejected.

---

---

Issues: Whether a secured creditor could challenge before the Company Court the Official Liquidator's order quantifying workmen's wages and whether such application was maintainable.

Analysis: The liquidator is required to investigate claims, admit or reject proof, and communicate his decision under the Companies (Court) Rules, 1959. Rule 164 confers a right of appeal on a creditor whose claim has been rejected in whole or in part. The Court held that the expression "any person aggrieved by any act or decision of the liquidator" in section 460(6) of the Companies Act, 1956 is wide enough to include a secured creditor whose rights are affected by the quantification of workmen's dues. Since the impugned quantification could directly affect the distribution of the assets and the amounts available to secured creditors, the petitioner-bank was a person aggrieved and had locus standi to seek judicial review of the liquidator's act or decision.

Conclusion: The objection to maintainability and locus standi was rejected, and the application was held to be maintainable in favour of the petitioner-bank.

---