2010 (7) TMI 1145 - HC - Companies Law

Summary

Issues Involved: Petitioner's grievance regarding direction to deposit sale realization with Official Liquidator.

Summary:
The petitioner's senior counsel raised concerns regarding the direction in the impugned order of the DRT, upheld by the DRAT, instructing the deposit of proceeds from the sale of immovable property with the Official Liquidator. It was acknowledged that the petitioner is not a secured creditor for this amount, emphasizing that employee liens would take precedence. The counsel highlighted the absence of any verified claims from unsecured creditors despite prior advertisements. Any future claims would be treated on a pari passu basis with the petitioner's claim. The petitioner undertook to cover expenses for future advertisements from the funds in their possession. A notice was issued to show cause against the rule nisi, returnable on a specified date. The court stayed the direction for the petitioner to deposit sale proceeds with the Official Liquidator until the next hearing, with a copy of the order to accompany the notice.