ICICI Bank's Securities Sale Priority in Liquidation Proceedings: High Court Directs Official Liquidator

The High Court addressed the priority of moneys realized by ICICI Bank Limited from the sale of securities, with the bank agreeing to transfer the amount to the Official Liquidator of Bombay High Court. The Madras Petrochem Employees Union's claim under Section 529-A of the Companies Act, 1956, was considered in light of pending liquidation proceedings, leading to the disposal of writ petitions. The court deferred to the Supreme Court's direction on the priority of claims and instructed parties to submit to the Official Liquidator for further proceedings, emphasizing the Official Liquidator's role in prioritizing and approving claims in accordance with the Companies Act.

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Issues:
1. Priority of moneys realized from the sale of movable and other securities by ICICI Bank Limited.
2. Claim by Madras Petrochem Employees Union under Section 529-A of the Companies Act, 1956.
3. Pending controversy regarding the priority of claims before the Supreme Court.
4. Disposal of writ petitions concerning the liquidation proceedings of M/s Madras Petrochem Limited.

Analysis:
1. The High Court addressed the issue of the priority of moneys realized by ICICI Bank Limited from the sale of movable and other securities. The bank had kept the amounts in a fixed deposit pursuant to the court's order. The bank expressed willingness to transfer the amount to the Official Liquidator of Bombay High Court, which was recorded by the court.

2. The Madras Petrochem Employees Union claimed under Section 529-A of the Companies Act, 1956, regarding the retention of sale proceeds of secured assets after depositing workmen's dues with the Liquidator. The court noted the submissions made by the union's counsel and decided to dispose of the writ petitions based on the pending liquidation proceedings before the Bombay High Court.

3. The controversy regarding the priority of claims was highlighted, indicating that the matter was pending before the Supreme Court. The court acknowledged the status quo directed by the Supreme Court and decided to relegate the parties to make their submissions before the Official Liquidator attached to the Bombay High Court for further proceedings.

4. In light of the above issues and considerations, the High Court disposed of both writ petitions with observations that the Official Liquidator, attached to the Bombay High Court, would be responsible for prioritizing rival claims and approving them in accordance with the provisions of the Companies Act. The court emphasized that all questions related to prioritizing claims should be undertaken by the Official Liquidator, and the parties were directed to make their submissions before the Official Liquidator for further action.

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