Overriding recovery law excludes company court leave for sale of liquidated assets, while workmen's dues remain protected.

Where a financial institution proceeds under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 after a winding-up order, the Act's special and overriding scheme gives the Debts Recovery Tribunal and Recovery Officer exclusive jurisdiction for debt recovery and sale of assets. On that basis, leave of the company court is not required to initiate or continue recovery proceedings, execute the recovery certificate, or conduct the sale, and the sale is not void for want of such leave. The official liquidator, however, retains the right to have workmen's dues determined and to seek apportionment from the sale proceeds under section 529A of the Companies Act, 1956.

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Issues: Whether, after a winding-up order, a financial institution proceeding under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 could sell the assets of the company in liquidation without leave of the company court, and whether the sale could be set aside as void.

Analysis: The provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 were held to confer exclusive jurisdiction on the Debts Recovery Tribunal and the Recovery Officer in relation to recovery of debts due to banks and financial institutions. In view of the overriding effect of section 34, the special and subsequent enactment prevails over the Companies Act, 1956 to the extent of inconsistency. On that principle, leave of the company court was not necessary for initiating or continuing proceedings under the Act, or for execution of the recovery certificate and sale of assets. The later decision concerning the State Financial Corporations Act was distinguished because it involved a different statutory conflict and did not dilute the rule laid down for proceedings under the Recovery of Debts Act. At the same time, the official liquidator retained the statutory right to determine workmen's dues and seek appropriate apportionment from the sale proceeds under section 529A of the Companies Act, 1956.

Conclusion: The sale and sale certificate were not void for want of leave of the company court, though the official liquidator could claim workmen's dues, if determined, from the sale proceeds.

Ratio Decidendi: Where the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 applies, its overriding and special character excludes interference by the company court under the Companies Act, 1956 for recovery and sale proceedings, while statutory priority claims of workmen remain enforceable against the proceeds.

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