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2009 (4) TMI 454 - HC - Companies LawWinding up - Overriding preferential payment - Held that:- We are not persuaded to accept the thesis propounded by Mr. Ashok Aggarwal, learned Senior Counsel, that the appellant-Reconstruction Company is a completely ‘free bird’. A perusal of section 13(9) of the SARFAESI Act would show that labour dues as contemplated by section 529A of the Companies Act have to be paid by the appellant-Reconstruction Company. At this stage it would be the duty of the learned Company Judge to ensure that provisions of section 13(9) are complied with. It is worthwhile to notice that the appellant-Reconstruction Company is already kept outside the winding up and is required to give information to the Official Liquidator with regard to the proposal of sale etc. The sale notice to the public has to contain clause that winding up proceedings are pending before the Company Court. These directions are merely supervisory in character and do not put such fetters so as to conclude that the Appellant Reconstruction Company cannot conduct its function properly. The appeal does not warrant admission and the same is dismissed.
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