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2011 (3) TMI 1458 - HIGH COURT OF BOMBAYWinding up - Overriding preferential payments - Whether secured creditor, while selling and disposing of and transferring secured assets by taking recourse to Securitisation Act, is obliged to seek prior approval or permission of company court in case secured assets belong to a company-in-liquidation - Whether section 529A is attracted only in event of winding up and particularly while determining proof and ranking of claims under Chapter V entitled ‘provisions applicable to every mode of winding up’ and only effect of provisions particularly sections 529A and 530 of Companies Act is that sale will have to abide by provisos to section 13(9) of Securitisation Act which make a specific reference to these provisions of Companies Act, 1956 – Held that:- section 529A is attracted only in the event of winding up and particularly while determining proof and ranking of claims under chapter V entitled "provisions applicable to every mode of winding up". sale conducted by the respondent No. 2 ARCIL cannot be said to be void. Once, the sale conducted by the ARCIL is in terms of Securitisation Act, then, bearing in mind the object and purpose sought to be achieved by the said Act and it being latter act and also a special Statute, there was no necessity of taking prior permission or leave of this Court before auctioning and selling the property. section 13(9) have been inserted to cover cases of company in liquidation, whose assets might be secured with secured creditors. In that event, the right exercised by the secured creditors under the Securitisation Act should not ignore the claims of workmen and that is the sole object in making reference to sections 529 and 529A in the subject provisos. company application fails and it is accordingly dismissed. respondent No. 2 ARCIL will have to abide by the provisos to section 13(9) of the Securitisation Act and remit the workmen’s dues in terms thereof by giving an appropriate undertaking to the official liquidator. The liquidator shall have the power to call upon ARCIL to abide by it and remit the dues as quantified by him in terms of the applicable proviso.
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