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TMI Blog2010 (2) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... be passed by the learned Company Judge. Therefore, the provisions of the Act would prevail and PSIDC cannot claim preference to the release of the said amount over and above the secured creditors in this relevant connection. Thus, the contrary arguments of learned counsel for the PSIDC "stricto sensu" deserve to be and are hereby repelled, in the obtaining circumstances of the case. Appeal dismissed. - CA NO. 23 OF 2007* IN CP NO. 112 OF 2004 - - - Dated:- 2-2-2010 - ASHUTOSH MOHUNTA AND MEHINDER SINGH SULLAR, JJ. B.S. Walia for the Appellant. B.S. Bagga for the Banks. Neeraj Khanna for the Official Liquidator. JUDGMENT Mehinder Singh Sullar, J. - The State of Punjab through the Punjab State Industrial Develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... papers etc., of the company. It would be the duty of the company to deliver the possession of the properties of the company to the Official Liquidator. As regards the objection raised by Mr. Narang, it is directed that the Consortium of Banks shall give details to the Official Liquidator of the assets and securities charged to the Consortium of Banks and on verifying and having been satisfied, the Official Liquidator shall keep the assets and securities charged to the Consortium of Banks being secured creditors, out of winding up proceedings. Let a formal order for winding up of respondent-company be drawn in accordance with the rules." 3. As is evident from the record that during the pendency of the Company Petition, the PSIDC file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urts. ( d )That even otherwise it is in the interest of justice that the loan of the State Government should be paid back as the loan has been advanced by the Punjab Rural Development Board and non-return of the same is affecting other development programmes." 4. On the strength of aforesaid grounds, the PSIDC prayed for the release of the amount, in the manner indicated hereinabove. 5. The respondent-Official Liquidator contested the claim of PSIDC and filed the written reply, inter alia , pleading certain preliminary objections of maintainability of the petition and locus standi of the PSIDC. It was claimed that the PSIDC is claiming the amount, in respect of a claim, which has been incurred by the State of Punjab, allegedly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt and since it is proved that the State of Punjab sanctioned a loan of Rs. 15.72 crores for payment to the canegrowers, so, the learned Company Judge ought to have directed to release the amount to the State of Punjab in this regard. 10. Hailing the impugned order, on the contrary, it has been urged on behalf of the Official Liquidator that as all orders of this Court passed in Crl. Misc. No. 13130-M of 1996 were subject to the orders of learned Company Judge, therefore, the provisions of the Act will prevail. 11. The argument of learned counsel for the PSIDC, at the first instance, appeared somewhat attractive, but when the same was scanned, in relation to the present controversy, then we cannot help observing the same is not on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch may be passed by the learned Company Judge in winding up petition. Meaning thereby, the earlier order dated 25-2-2005, on which the PSIDC is basing its claim, was subject to the orders, that may be passed by the learned Company Judge. Therefore, the provisions of the Act would prevail and PSIDC cannot claim preference to the release of the said amount over and above the secured creditors in this relevant connection. 14. Again, it is not a matter of dispute that at the time, when the winding up order dated 9-10-1997 was passed, the proceedings for recovery of dues by the secured creditors i.e., the State Bank of India and State Bank of Patiala were pending before the Debt Recovery Tribunal under Recovery of Debts Due to Banks Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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