https://www.taxtmi.com/caselaws?id=100977 Under the proviso to section 529(2) of the Companies Act, 1956, a winding-up court may require secured creditors who stand outside winding up and choose to realise their securities to bear the expenses incurred in preserving the charged assets. The court reasoned that this liability is not confined to a final liquidation account, because preservation work by the liquidator or provisional liquidator directly benefits the secured creditors and legislative intent would be defeated if contribution could be ordered only after full expenditure was first raised elsewhere. On the stated facts, the court treated interim ad hoc contribution as permissible while the secured creditors decided whether to relinquish their security. en-us Tue, 16 Oct 1984 00:00:00 +0530 Wed, 08 Feb 2012 11:56:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100977 Under the proviso to section 529(2) of the Companies Act, 1956, a winding-up court may require secured creditors who stand outside winding up and choose to realise their securities to bear the expenses incurred in preserving the charged assets. The court reasoned that this liability is not confined to a final liquidation account, because preservation work by the liquidator or provisional liquidator directly benefits the secured creditors and legislative intent would be defeated if contribution could be ordered only after full expenditure was first raised elsewhere. On the stated facts, the court treated interim ad hoc contribution as permissible while the secured creditors decided whether to relinquish their security. Case-Laws Companies Law Tue, 16 Oct 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100977