Supreme Court

Laxmi Fibres Ltd. v. A.P. Industrial Dev. Corpn. Ltd. and Ors.

MANU/SC/0843/2015

07.08.2015

Company

State financial corporation's rights impeded by right of workers to wages in insolvency

The right of a state financial corporation under Section 29 of the State Financial Corporations Act, 1959 is subject to rights of workers of the company in liquidation to recover wages. The Court added that the Official Liquidator in such liquidation proceedings does not have jurisdiction to adjudicate the claim of a secured creditor under the Act of 1959.

Relevant

A.P. State Financial Corporation v. Official Liquidator MANU/SC/0491/2000
International Coach Builders Ltd. v. Karnataka State Financial Corpn. MANU/SC/0189/2003
Rajasthan State Financial Corpn. v. Official Liquidator MANU/SC/1033/2005

Tags : state financial corporation liquidation rights

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