https://www.taxtmi.com/caselaws?id=262517 A secured financial corporation permitted to stand outside liquidation and exercise rights under the State Financial Corporations Act does not become an unsecured creditor, and it is not required to prove its debt before the Official Liquidator. The Companies Act amendments in Section 529(1) proviso and Section 529A impose only a limited restriction to protect the workmen's pari passu charge. The Company Court and Official Liquidator are confined to safeguarding workmen's dues and ensuring compliant distribution, not adjudicating or quantifying the secured creditor's claim. If the claim is disputed, the appropriate remedy lies in civil proceedings. en-us Fri, 07 Aug 2015 00:00:00 +0530 Sat, 09 Sep 2017 12:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=262517 A secured financial corporation permitted to stand outside liquidation and exercise rights under the State Financial Corporations Act does not become an unsecured creditor, and it is not required to prove its debt before the Official Liquidator. The Companies Act amendments in Section 529(1) proviso and Section 529A impose only a limited restriction to protect the workmen's pari passu charge. The Company Court and Official Liquidator are confined to safeguarding workmen's dues and ensuring compliant distribution, not adjudicating or quantifying the secured creditor's claim. If the claim is disputed, the appropriate remedy lies in civil proceedings. Case-Laws Companies Law Fri, 07 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=262517