2010 (8) TMI 181

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....1996 against the respondent company before the Debts Recovery Tribunal (for short 'Tribunal') for recovery of a sum of Rs. 60,81,469.04. The Tribunal vide order dated 10-12-1997 allowed O.A. No. 911/1996. When the matter stood at that stage, this Court vide order dated 29-10-1998 ordered to wind up the respondent company. On the winding up order, the Official Liquidator of this Court had taken over the assets and liabilities of the company in liquidation. 3. After the winding up order, the Tribunal issued a recovery certificate on 28-2-2003 as per Annexure-B in favour of the applicant for a sum of Rs. 78,97,599.04. On the basis of the recovery certificate the applicant filed a claim petition before the Official Liquidator for a sum of Rs....

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....d the workers as specified in section 529A of the Companies Act. In the instant case, the respondent-Official Liquidator passed the impugned order denying the claim of the applicant without complying the mandatory requirement under section 529A of the Companies Act. On this ground the impugned order is liable to be quashed. 7. The Supreme Court in Allahabad Bank v. Canara Bank JT 2000(4) SC 411 held as under : "25. Thus, the adjudication of liability and the recovery of the amount by execution of the certificate are respectively within the exclusive jurisdiction of the Tribunal and the Recovery Officer and no other Court or authority much less the Civil Court or the Company Court can go into the said questions relating to the liabilit....

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....examine the fact situation in the present case. It is not in dispute that the applicant obtained decree in O.A. No. 911/1996 on 10-12-1997 i.e. prior to the order of winding up. The subsequent issuance of recovery certificate on 28-2-2003 is only a consequential to the decree in O.A. No. 911/1996. After the winding up order on 29-10-1998 the Official Liquidator sold the assets of the company in liquidation and realised a sum of Rs. 4 crores. On realisation of the amount by the Official Liquidator it is necessary to pay the amounts by complying section 529A of the Companies Act. Section 19(19) of the Recovery of Debts Due to the Banks and Financial Institutions Act, 1993 also specifies that the sale proceeds of the assets of the company-in-l....