CONSOLIDATED FIBRES AND CHEMICALS LTD Vs. STATE

JUDGEMENT

(1.) Mr. Debdutta Sen, learned Advocate appears for the certificate holder, Assets Reconstruction Company of India Limited, in a proceeding before the Debts Recovery Tribunal, Mumbai.

(2.) The official liquidator is in custody and control of the assets of the company in liquidation.

(3.) It is quite certain that in the recovery of debts, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 has primacy over the Companies Act, 1956. In Section 34(2) thereof, the Companies Act, 1956 is not one of the Acts which has overriding effect. Under Section 34, the statutory remedy of winding up is not taken away. But in my opinion, after a winding up order is made, the question arises as to distribution of the assets of the company in liquidation to meet its debts. Then, the question of primacy does arise. In any event there are Supreme Court decisions which say that the Receiver for collection of rents appointed by the Debts Recovery Tribunal is to act in consultation with the Official Liquidator, as submitted by Mr. Sen.