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2008 (9) TMI 554 - HC - Companies LawWinding up – Exercise and control of liquidator’s power - Overriding preferential payments - primacy of the said Act of 1993 over the company court's jurisdiction to interfere with an order passed by the recovery officer under the said Act - Held that:- 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. Hon'ble company judge after analysing all the decisions correctly came to the conclusion that section 28(4) of the said Act of 1993 permits a recovery officer to apply before the court in whose custody there is money belonging to the certificate debtor. It is also true that the non obstante clause in section 446(2) yields to the overriding provisions of the 1993 Act but it is necessary to notice the scope of the company court's authority over all the matters relating to a company (in liquidation).The hon'ble company judge has correctly assessed the position of the official liquidator in respect of the company (in liquidation) and we also hold that his Lordship has correctly came to the conclusion that the official liquidator need not transmit the sale proceeds held by him to the Recovery Officer, Debts Recovery Tribunal-II, New Delhi, and it will be open to such recovery officer to apply under section 28(4) of the said Act.
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