IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 11.03.2011 CORAM: THE HONOURABLE MR.JUSTICE VINOD K.SHARMA Company Application No.1284 of 2010 in Company Petition No.526 of 2000 VINOD K.SHARMA, J. This company application has been moved under Rules 9, 11 (b) and 19 of the Companies Court Rules, 1959 with a prayer to direct the Official Liquidator to disburse to the applicant forthwith the adjudicated sum of Rs.8,03,14,348/- (Rupees eight crores three lakhs fourteen thousand three hundred and forty eight only) together with interest from October 2008 at the rate to be determined by the Hon'ble Court. 2. The applicant is an assignee of Punjab National Bank, which is said to have assigned all its rights, title and interest in the adjudicated claim of Rs.8,03,14,348/- (Rupees eight crores three lakhs fourteen thousand three hundred and forty eight only). 3. In the counter filed to the application, the adjudicated claim of the applicant is not disputed. The only stand taken is that the amount can be released to the applicant only in terms of Section 529 (A) of the Company Act, which reads as under:- "Overriding preferential payments; 529A. (1) Notwithstanding anything contained in any other provision of this Act or any other law for the time being in force, in the winding up of a company - (a) workmen's dues ; and (b) debts due to secured creditors to the extent such debts rank under clause (c) of the proviso to sub-section (1) of section 529 pari passu with such dues, shall be paid in priority to all other debts. (2) The debts payable under clause (a) and clause (b) of sub-section (1) shall be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions." 4. In view of the provisions of Section 529A read as above, the prayer made by the applicant cannot be accepted at this stage, as the Official Liquidator, under the statutory provisions of law has to determine debts due to the workmen, as they are to rank pari passu with that of the secured creditors. 5. Consequently, this application is disposed of by directing the Official Liquidator to determine the sum due and payable to the workmen and thereafter discharged the liability of the company strictly in terms of the Companies Act. The needful be done within six weeks of the receipt of the certified copy of the order. No costs. 11.03.2011 Index : yes Internet : yes Mra VINOD K.SHARMA, J. mra Company Application No.1284 of 2010 in Company Petition No.526 of 2000 11.03.2011