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2019 (8) TMI 273 - HC - Companies LawTaking over of property - liabilities of the workmen under Section 529A of the Companies Act, 1956 - costs of security provided at the property by the Official Liquidator - HELD THAT:- It is plain that in terms of the proviso to Section 529(1), the security of every secured creditor is deemed to be subject to a pari passu charge in favour of the workman to the extent of the workman’s dues. Consequently, the impugned order of the learned Single Judge requiring the Appellant to undertake the liability of workmen’s dues cannot be said to be contrary to the law - As far as the obligation of the Appellant to provide security at the site of the property in question is concerned, the proviso to Section 529(2) of the Act is clear in this regard that if the secured creditor proceeds to realise security, it ‘shall be liable to pay his portion of expenses incurred by the liquidator’ for preservation of security. In the present case, even if one were to consider that the Appellant could not have proceeded to realise the security till it actually got possession of the property in question i.e. from the date it was ordered to be de-sealed by the DRT i.e. 12th October 2017, certainly the obligation to preserve the property thereafter was that of the Appellant. The Appellant will be handed over possession of the property in question by the OL subject to the Appellant - Appeal disposed off.
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