Secured creditor claim failed where no proof of status was filed, so inspection and sale of liquidation assets were refused.

A petitioner claiming to be a secured creditor sought permission to inspect and sell the assets of a company in liquidation under Section 457(3) of the Companies Act, 1956. The court found no material on record proving secured creditor status, so the request for sale of assets could not be granted. The inspection request also failed because the petitioner was neither established as a secured creditor nor shown to be a prospective buyer. The order noted that the petitioner could lodge its claim when the Official Liquidator invited claims, and the application was dismissed.

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Issues: Whether the petitioner, claiming to be a secured creditor, was entitled under Section 457(3) of the Companies Act, 1956 to seek permission for inspection of the company's assets and for their sale.

Analysis: The petitioner did not place any material on record to establish that it was a secured creditor of the company in liquidation. In the absence of such proof, the prayer for permitting sale of the assets could not be granted. The further request for inspection also failed because the petitioner was neither shown to be a secured creditor nor a prospective buyer. The order left it open to the petitioner to lodge its claim when claims were invited by the Official Liquidator.

Conclusion: The petitioner was not entitled to the reliefs sought, and the application was dismissed.

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