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1998 (4) TMI 437 - SC - Companies LawDirections given by the court in winding up directing the official liquidator to sell the vessel along with the appellant and to bring the sale proceeds into court. Held that:- Appeal allowed. The appellant has a supervening priority in respect of its claims against the vessel, it has a right to sell that vessel and realise the sale proceeds. The appellant cannot be divested of this statutory right without its consent or be subject to other priorities under the Companies Act. Looking to the overriding priority statutorily given to the appellant, the impugned order passed by the High Court is set aside. The appellant shall be entitled to sell the vessel by auction in accordance with the procedure prescribed by its rules and regulations. Since the appellant has no objec- tion to the official liquidator and/or a representative of the first-respon- dent (petitioning creditor) remaining present at the sale, it will be open to the official liquidator to depute its representative to remain present at the sale and the same right is given to the first respondent as well.
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