https://www.taxtmi.com/caselaws?id=102223 Leave to continue a suit against a company in liquidation may be granted under section 446 of the Companies Act, 1956, but the court must preserve the secured creditor's statutory rights under sections 529 and 529A. A secured creditor who realises security is entitled to priority for the protected portion under section 529A and may also prove for any unpaid balance, subject to the insolvency scheme. The condition barring the creditor from participation in dividends beyond section 529A was too wide and unsustainable, so leave could be granted without that restrictive condition. en-us Mon, 07 Oct 1991 00:00:00 +0530 Tue, 14 Feb 2012 11:28:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=102223 Leave to continue a suit against a company in liquidation may be granted under section 446 of the Companies Act, 1956, but the court must preserve the secured creditor's statutory rights under sections 529 and 529A. A secured creditor who realises security is entitled to priority for the protected portion under section 529A and may also prove for any unpaid balance, subject to the insolvency scheme. The condition barring the creditor from participation in dividends beyond section 529A was too wide and unsustainable, so leave could be granted without that restrictive condition. Case-Laws Companies Law Mon, 07 Oct 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=102223