TaxTMI 
TaxTMI 
2004 (8) TMI 407
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....the case are that the Board of Industries and Financial Reconstruction (BIFR) recommended winding up of the company M/s. U.P. Chemical and Carbide Ltd. (hereinafter referred to 'UPCCL') before the High Court of Judicature at Allahabad in the year 1994. The said High Court vide its order dated 19-7-1994 directed the winding up of UPCCL as no one opposed it nor company filed any appeal against the reference order of BIFR. Consequently, Official Liquidator under directions of the Court started taking steps for winding up of the company. After exchange of affidavits and counter-affidavit in the year 1996 the Official Liquidator sought permission to sell the assets of the company by auction. Meanwhile, the workers through their union filed appli....
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.... Bank (present objector) has a claim of Rs. 1,65,12,174.00 and 379 Ex-Workers' claim was to the tune of Rs. 1,89,16,530.00 total amounting to Rs. 15,46,17,964.00. The Official Liquidator made the following submissions in his report for disbursement of the amount. (I)The Official Liquidator may be permitted to declare dividend at the rate of 45.3 paise per rupee to the secured creditor and ex-workers. (II)The Official Liquidator may be permitted to dispense with the settlement of claims of unsecured creditors in the absence of insufficient funds. (III)The Official Liquidator may be permitted to dispense with the settlement of the list of contributories in absence of insufficientfunds. (IV)The Official Liquidator may also kindly b....
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....n case No. 59/2000 was transferred to Allahabad. The Official Liquidator filed objections in the said proceedings. The DRT after considering the submissions of the parties before it, issued recovery certificates under section 31A of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDBFI Act). The said recovery certificate was sent to DRT, Lucknow and notices were sent to the Official Liquidator in the matter. As such the Official Liquidator had full knowledge of the recovery proceedings before the DRT. The Indian Overseas Bank in the objections has raised the plea that once DRT got seized with the matter, the Official Liquidator loses its jurisdiction in the liquidation. It is further alleged in the objections that the O....
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....d in Allahabad Bank v. Canara Bank [2000] 4 SCC 406. In para No. 50 of the said case the Apex Court has held as under: "For the aforesaid reasons, we hold that at the stage of adjudication under section 17 and execution of the certificate under section 25 etc. the provisions of the RDB Act, 1993 confer exclusive jurisdiction on the Tribunal and the Recovery Officer in respect of debts payable to banks and financial institutions and there can be no interference by the Company Court under section 442 read with section 537 or under section 446 of the Companies Act, 1956. In respect of the monies realized under the RDB Act, the question of priorities among the banks and financial institutions and other creditors can be decided only by the Tr....