Harmonised distribution rules for winding-up proceeds and DRT recoveries, with Official Liquidator funds governed by company law.

Competing non obstante clauses in the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and section 529A of the Companies Act, 1956 were harmonised by distinguishing between amounts realised by the Debt Recovery Tribunal and sale proceeds already held by the Official Liquidator. Where the Tribunal has realised the debt, distribution follows the statutory mechanism under the 1993 Act through the Recovery Officer. Where sale proceeds remain in the Official Liquidator's hands in winding-up, distribution is made under section 529A under the supervision of the Company Court. The objections to the Official Liquidator's report were therefore not maintainable, and the distribution report was accepted.

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Issues: Whether the Official Liquidator retained jurisdiction to distribute sale proceeds lying in his hands under section 529A of the Companies Act, 1956 despite recovery proceedings before the Debt Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

Analysis: The competing non obstante clauses in section 34 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and section 529A of the Companies Act, 1956 required a harmonious construction. The reasoning distinguished between monies actually realised by the Tribunal in recovery proceedings and sale proceeds already in the hands of the Official Liquidator. It was held that where the Debt Recovery Tribunal has realised the debt, distribution must follow the mechanism under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and the Recovery Officer's powers, but where the sale proceeds are with the Official Liquidator, distribution must be made under section 529A of the Companies Act, 1956 under the supervision of the Company Court.

Conclusion: The objections to the Official Liquidator's report were not maintainable, and the report for distribution under section 529A was accepted.

Ratio Decidendi: Sale proceeds in the hands of the Official Liquidator in a winding-up proceeding are distributable under section 529A of the Companies Act, 1956, while amounts realised through the Debt Recovery Tribunal are to be dealt with under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

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