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2003 (3) TMI 529 - SC - Companies LawWhether the rights of the State Financial Corporation under section 29 of SFC Act to sell and realise the security could be exercised without reference to the Company Court when a winding up order is made against the company? Held that:- Appeal allowed. The right unilaterally exercisable under section 29 of the SFC Act is available against a debtor, if a company, only so long as there is no order of winding up. The SFCs cannot unilaterally act to realise the mortgaged properties without the consent of the official liquidator representing workmen for the pari passu charge in their favour under the proviso to section 529 of the Companies Act, 1956. If the official liquidator does not consent, the SFCs have to move the Company Court for appropriate directions to the official liquidator who is the pari passu charge holder on behalf of the workmen. In any event, the official liquidator cannot act without seeking directions from the Company Court and under its supervision.
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