Appellants' Preferential Payment Claim Rejected; Must Join Creditors for Dividends in Company Wind-Up Proceedings.

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....The High Court rejected the appellants' application for release of the amounts deposited by the respondent company. The appellants' contention that their petition was prior in time, entitling them to preferential payment from the deposited amount, was unmerited. Since the Company Court had decided to proceed with winding up the company, the appellants would have to stand with other creditors for recovering dividends u/s 529 of the Act. Their petition was rendered infructuous once the winding up order was passed, as a company can be wound up only once. The appellants' application seeking withdrawal of the deposited amount in their disposed petition was not maintainable, as they could not have better rights than other creditors over the company's properties. The appeal was disposed of.....