1999 (12) TMI 767

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..... d certain terms and conditions in order to ensure that the official liquidator is apprised of the result of the proceedings before the Tribunal and the information relating to the company's properties and more important that the dues of workmen are deposited by the applicant and the applicant seeks permission of the court before the sale of any properties. It is against this order that respondents Nos. 2 to 10 in the company application filed the present appeal. The second appellant was the managing director of the company and others were either directors or sureties. The company was wound up by an order of this court dated November 16, 1998. While winding up proceedings were pending, the first respondent-bank which is a secured credito .....

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..... ding up petition and not after the company is wound up. The learned judge rightly held that section 446 does not place any such limitation. We fail to understand as to why even before the winding up order is passed, the secured creditor should seek permission to continue the suits or other proceedings against the company and to stay outside the liquidation process. The last contention vehemently urged by learned counsel is that the principle laid down by the Supreme Court in Ranganathan (M.K.) v. Govt. of Madras [1955] 25 Comp Cas 344 , reiterated in Industrial Credit and Investment Corporation of India Ltd. v. Srinivas Agencies [1996] 86 Comp Cas 255 no longer holds good after the introduction of sections 529 and 529A in the Comp .....

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..... dings in O.A. No. 1301 of 1997 on the file of Debt Recovery Tribunal. After the decree is obtained therein, the question of realisation of mortgaged assets by sale thereof will arise. Whether such permission should be granted and if so, on what terms, need not be decided at this stage. In fact, the learned judge prescribed necessary safeguards to ensure that the applicant-bank on its own accord does not sell away mortgaged properties and also to see that the workmen's dues are discharged. In fact, it is not open to the appellants to raise such contentions, if at all it is for the other creditors or the official liquidator to object to the modalities of recovery of debt. We see no merit in this appeal. The appeal is dismissed at the admiss .....

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