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2019 (11) TMI 904 - HC - Companies LawSeizure of liquidation proceedings - recovery of dues - priority of claims - attachment of bank accounts - HELD THAT - These two writ petitions can be disposed since Bombay High Court is seized of liquidation of M/s Madras Petrochem Limited and the issue regarding the priority of the claims has to be settled by the Bombay High Court in the pending liquidation proceedings subject to the outcome of SLP filed by the Assistant Commissioner (CT). All questions relating to the prioritising of rival claims as well as approving of the claims is to be undertaken by the Official Liquidator, attached to the Bombay High Court. The petitioner/ICICI Bank shall keep all the 8 (eight) Fixed Deposits renewed pending such exercise. The writ petitions are disposed off relegating the parties to make their submissions before the Official Liquidator, attached to Bombay High Court in accordance with law. The Official Liquidator, attached to Bombay High Court, will examine the same in accordance with the provisions of the Companies Act.
Issues:
1. Priority of moneys realized from the sale of movable and other securities by ICICI Bank Limited. 2. Claim by Madras Petrochem Employees Union under Section 529-A of the Companies Act, 1956. 3. Pending controversy regarding the priority of claims before the Supreme Court. 4. Disposal of writ petitions concerning the liquidation proceedings of M/s Madras Petrochem Limited. Analysis: 1. The High Court addressed the issue of the priority of moneys realized by ICICI Bank Limited from the sale of movable and other securities. The bank had kept the amounts in a fixed deposit pursuant to the court's order. The bank expressed willingness to transfer the amount to the Official Liquidator of Bombay High Court, which was recorded by the court. 2. The Madras Petrochem Employees Union claimed under Section 529-A of the Companies Act, 1956, regarding the retention of sale proceeds of secured assets after depositing workmen's dues with the Liquidator. The court noted the submissions made by the union's counsel and decided to dispose of the writ petitions based on the pending liquidation proceedings before the Bombay High Court. 3. The controversy regarding the priority of claims was highlighted, indicating that the matter was pending before the Supreme Court. The court acknowledged the status quo directed by the Supreme Court and decided to relegate the parties to make their submissions before the Official Liquidator attached to the Bombay High Court for further proceedings. 4. In light of the above issues and considerations, the High Court disposed of both writ petitions with observations that the Official Liquidator, attached to the Bombay High Court, would be responsible for prioritizing rival claims and approving them in accordance with the provisions of the Companies Act. The court emphasized that all questions related to prioritizing claims should be undertaken by the Official Liquidator, and the parties were directed to make their submissions before the Official Liquidator for further action.
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