Hon'ble Judges/Coram:
Vikramajit Sen and S.K. Singh

JUDGMENT

S.K. Singh, J.

Civil Appeal No. 5805 of 2005

1. In this appeal preferred by the Appellant-company under liquidation represented by the Official Liquidator the question of law arising for consideration is whether the Official Liquidator can claim any power or jurisdiction in itself to adjudicate and quantify the claim of statutory corporations such as Respondent No. 1, A.P. Industrial Development Corporation and Respondent No. 2, A.P. State Financial Corporation when the Company Judge has permitted them to stand outside the liquidation proceeding subject to certain conditions under which the Respondent Corporations may pursue the powers available to them Under Section 29 of the State Financial Corporations Act, 1959 (for brevity referred to as 'the SFC Act').

2. The relevant facts are not at all under dispute and to answer the issue of law indicated above it is not necessary to delve deeper into facts. It would suffice to notice that the Official Liquidator has taken over the charge of the company by virtue of Section 445 of the Companies Act and the property of the company is also seized by the first Respondent (the Corporation) Under Section 29 of the SFC Act. The sale of the assets of the company was conducted by first Respondent as per conditions imposed by the High Court. To comply with one of the conditions the corporation was required to obtain permission of the High Court for finalizing/confirming the sale. The Official Liquidator had already been allowed to inspect the properties and assets of the company and to take inventory as and when required. The valuer's report was also placed before the court before the properties covered under the mortgage deeds in favour of Corporation were put to sale. The Respondent-corporation had also submitted to the order of the Company Judge requiring the corporation to undertake to deposit workmen's dues with the Official Liquidator as and when quantified by him as per the provisions of Section 529A of the Indian Companies Act with interest at the bank rate and whatever surplus would remain after the sale and realization of the dues of the secured creditor........