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TMI Blog2013 (1) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... secured creditor….' Meaning thereby the law does not make any distinction between these secured creditors on the basis of their holding charge being the first charge or the second charge or so on. Similar is the position so far as section 529A is concerned as clause (b) of sub-section (1) of section 529A states that the words used 'debts due to secured creditors….' mean that the law does not draw any distinction between the secured creditors. Thus law does not make any distinction between secured creditors on basis of their holding charge being first charge or second charge or so on for purpose of sections 529 and 529A. - O.J. Appeal Nos. 110 & 152 of 2008, Co. Application Nos. 237 of 2005, 411 & 657 of 2006 - - - Dated:- 7-11-2012 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so on) is taken into consideration whereby the 'ratio' worked out brings down the portion in favour of the workmen of a lower value whereas, at the time of disbursement of the amount, the amount is disbursed to the first charge-holders. He further submitted that the amount is not disbursed to the second charge holders and so on. 2. This Court requested the learned counsel to make it clear as to whether, under the law, while determining the pari passu charge, any distinction is made by law inter se the first charge holder and the second charge holder and so on. The learned advocate submitted that Sections 529 and 529A of the Companies Act, 1956 do not make any such distinction. On perusal of the aforesaid two provisions, we find that cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tile Labour Association, representing the workers was impleaded as party respondent No.7 in this application, notice was issued and an affidavit-in-reply was filed on 15.2.2007 by one Mr. Raghavendra Sharma, who is (sic. has) identified himself as an active representative/member of the Textile Labour Association. He has raised an objection in the said affidavit that the secured creditors are not having their charge over the property as the charge created on the property is required to be incorporated in Form No.7/12. The said charge is not incorporated in Form No.7/12. He has further stated that as far as the ratio contemplated under Section 529 and 529A of the Companies Act, 1956 is concerned, only the secured creditors having the first ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t could not convince this Court on the said contention. The learned advocate for the appellant was requested to point out any particular provision or part thereof like Section 529 and/or 529A which makes distinction between the secured creditors on the basis of their holding the first charge or the second charge or so on. The learned advocate is not able to point out any such distinction being made by the legislature so far as Section 529 and 529A of the Companies Act are concerned. The learned advocate then relied upon a decision of the Honourable Apex Court in the matter of Jitendra Nath Singh v. Official Liquidator [2012] 116 SCL 215. The learned advocate for the appellant read Head Note A and then the relevant paragraphs being paragraph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly in relation to first charge holder and the second charge holder cannot be equated with the first charge holder. Therefore, clubbing of debts where the charges might place of the first charge holder assignor bank" The learned advocate for the appellant could not explain, 'the reference to context' of the aforesaid conclusion drawn by the Bank and therefore the same cannot be made applicable to the facts of the case on hand more particularly, when this Court, on examination of the provisions of Sections 529 and 529A of the Companies Act, found that the submission made by the learned advocate for the appellant has no force. 7. Learned advocate, Mr Bhagat submitted that he has about half a dozen orders on the same line and the said orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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