https://www.taxtmi.com/caselaws?id=110175 In company liquidation, a secured creditor's right to realise security under the State Financial Corporations Act is subject to the winding-up regime under the Companies Act. Sale and distribution cannot proceed independently of the company court or without associating the Official Liquidator, because the workmen's pari passu charge and overriding preferential treatment under sections 529 and 529A must be protected. Where the corporation has not invoked the statutory machinery under its Act, it cannot claim an unqualified preference over other creditors. A fresh valuation was also required before sale to ensure a fair price and proper protection of creditor and workmen interests. en-us Wed, 05 Oct 2005 00:00:00 +0530 Mon, 06 Apr 2020 15:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110175 In company liquidation, a secured creditor's right to realise security under the State Financial Corporations Act is subject to the winding-up regime under the Companies Act. Sale and distribution cannot proceed independently of the company court or without associating the Official Liquidator, because the workmen's pari passu charge and overriding preferential treatment under sections 529 and 529A must be protected. Where the corporation has not invoked the statutory machinery under its Act, it cannot claim an unqualified preference over other creditors. A fresh valuation was also required before sale to ensure a fair price and proper protection of creditor and workmen interests. Case-Laws Indian Laws Wed, 05 Oct 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110175