https://www.taxtmi.com/caselaws?id=459712 After a winding-up order, company assets in the custody of the Official Liquidator and sold under the Company Court's supervision must have the sale proceeds remitted for distribution under the Companies Act, 1956. A secured creditor cannot retain such proceeds as its own asset or invoke independent sale powers once the court controls the sale, and the proceeds remain subject to liquidation priorities, including the workmen's pari passu claim. A defence inconsistent with the court record, prior orders, correspondence, and settled Supreme Court authority was treated as frivolous and vexatious, justifying an award of costs against the secured creditor. en-us Fri, 17 Jul 2015 00:00:00 +0530 Tue, 24 Dec 2024 20:36:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459712 After a winding-up order, company assets in the custody of the Official Liquidator and sold under the Company Court's supervision must have the sale proceeds remitted for distribution under the Companies Act, 1956. A secured creditor cannot retain such proceeds as its own asset or invoke independent sale powers once the court controls the sale, and the proceeds remain subject to liquidation priorities, including the workmen's pari passu claim. A defence inconsistent with the court record, prior orders, correspondence, and settled Supreme Court authority was treated as frivolous and vexatious, justifying an award of costs against the secured creditor. Case-Laws Companies Law Fri, 17 Jul 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459712