https://www.taxtmi.com/caselaws?id=111591 Once winding up proceedings have commenced, a secured creditor cannot sell the company's assets without leave of the company court; such a sale is void under section 537 of the Companies Act, 1956, and is also constrained by section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. The court held that the secured creditor's powers under the State Financial Corporations Act, 1951 remain subject to the pari passu protection afforded to workmen under sections 529 and 529A. Although the sale was legally void, the court declined to unsettle the completed transaction because of delay and third-party possession, and instead directed deposit of the sale proceeds with interest before the Official Liquidator for distribution under court supervision. en-us Mon, 05 Jun 2006 00:00:00 +0530 Tue, 24 Apr 2012 12:16:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111591 Once winding up proceedings have commenced, a secured creditor cannot sell the company's assets without leave of the company court; such a sale is void under section 537 of the Companies Act, 1956, and is also constrained by section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. The court held that the secured creditor's powers under the State Financial Corporations Act, 1951 remain subject to the pari passu protection afforded to workmen under sections 529 and 529A. Although the sale was legally void, the court declined to unsettle the completed transaction because of delay and third-party possession, and instead directed deposit of the sale proceeds with interest before the Official Liquidator for distribution under court supervision. Case-Laws Companies Law Mon, 05 Jun 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111591