https://www.taxtmi.com/caselaws?id=101536 A prior hypothecation enforced by a financial corporation under the State Financial Corporations Act, where possession of the secured assets had already been taken before winding up, was treated as prevailing over the liquidation process. The absence of charge registration under the Companies Act did not defeat the earlier security interest because the hypothecation arose before incorporation as a company. The court also noted that the winding-up proceedings had been obtained without notice to the secured creditor, who had no notice of the stay or the liquidation. The secured creditor was therefore kept outside the liquidation and permitted to proceed against the hypothecated machinery and equipment, with limited directions for segregation and handover of those assets. en-us Fri, 27 Nov 1987 00:00:00 +0530 Fri, 10 Feb 2012 11:28:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101536 A prior hypothecation enforced by a financial corporation under the State Financial Corporations Act, where possession of the secured assets had already been taken before winding up, was treated as prevailing over the liquidation process. The absence of charge registration under the Companies Act did not defeat the earlier security interest because the hypothecation arose before incorporation as a company. The court also noted that the winding-up proceedings had been obtained without notice to the secured creditor, who had no notice of the stay or the liquidation. The secured creditor was therefore kept outside the liquidation and permitted to proceed against the hypothecated machinery and equipment, with limited directions for segregation and handover of those assets. Case-Laws Companies Law Fri, 27 Nov 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101536