https://www.taxtmi.com/caselaws?id=96553 After a winding-up order, leave to continue execution proceedings cannot be used to create a preference for one creditor over others unless the Companies Act itself authorises that priority. The statutory scheme allowed recovery of sums paid under a guarantee in the same manner as a loan, but it did not permit recovery from the principal debtor before the Government had actually honoured the guarantee. The company's liability in certificate proceedings remained subject to the winding-up regime and pari passu distribution of assets under the official liquidator's control. Any leave granted under the winding-up provisions must operate within those statutory priorities and cannot defeat the prescribed order of distribution. en-us Wed, 22 Apr 1931 00:00:00 +0530 Mon, 09 Jan 2012 12:34:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96553 After a winding-up order, leave to continue execution proceedings cannot be used to create a preference for one creditor over others unless the Companies Act itself authorises that priority. The statutory scheme allowed recovery of sums paid under a guarantee in the same manner as a loan, but it did not permit recovery from the principal debtor before the Government had actually honoured the guarantee. The company's liability in certificate proceedings remained subject to the winding-up regime and pari passu distribution of assets under the official liquidator's control. Any leave granted under the winding-up provisions must operate within those statutory priorities and cannot defeat the prescribed order of distribution. Case-Laws Companies Law Wed, 22 Apr 1931 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96553