https://www.taxtmi.com/caselaws?id=103603 A State Financial Corporation's power to enforce security under section 29 of the State Financial Corporations Act, 1951 must be exercised consistently with company liquidation proceedings under the Companies Act, 1956. Where winding-up is pending, the secured asset cannot be sold in disregard of the official liquidator, the pari passu rights of workmen and other secured creditors, or the court's supervisory control. The Corporation may proceed with sale only by associating the liquidator in the process and subject to confirmation by the court, although a different position may arise where possession was validly taken before winding up. en-us Wed, 18 Feb 1998 00:00:00 +0530 Thu, 23 Feb 2012 18:40:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103603 A State Financial Corporation's power to enforce security under section 29 of the State Financial Corporations Act, 1951 must be exercised consistently with company liquidation proceedings under the Companies Act, 1956. Where winding-up is pending, the secured asset cannot be sold in disregard of the official liquidator, the pari passu rights of workmen and other secured creditors, or the court's supervisory control. The Corporation may proceed with sale only by associating the liquidator in the process and subject to confirmation by the court, although a different position may arise where possession was validly taken before winding up. Case-Laws Companies Law Wed, 18 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103603