LAW FOR ALL

Sections 529 and 529A of the Company Act - Charge/Mortgage/Undertaking - in a previous litigation between appellant and company, the company gave an undertaking not to dispose of it's assets for supply of Gas - company petition filed by the appellant - official liquidator appointed -with permission one item was sold at public auction- workers claimed as per Sections 529 and 529A of the Company Act - High court rejected the objection of ONGC and allowed the claim of workers as by virtue of judgement , ONGC can not claimed as secured creditor - ONGC claimed as secured creditor by virtue of the undertakings- Apex court also dismissed the civil appeal and held that In the face of the directions given by this Court in the case of Oil and Natural Gas (supra) wherein this Court had directed that the ONGC is at liberty to take immediate steps to recover the charges due from the respondents in the light of the judgment. This Court did not direct that in view of the undertaking dated 27th May, 1987 the respondents have created enforceable charge in favour of ONGC. Furthermore, it is a matter of record that even the ONGC did not consider itself to be a secured creditor. At the time when the Ambica Mills Co. Ltd. came under the jurisdiction of the Official Liquidator, none of the two options adverted to earlier was exercised by ONGC. The plea of being a secured creditor is clearly an afterthought. Therefore, in our opinion, the judgments rendered by the learned Single Judge and the Division Bench of the Gujarat High Court do not call for any interference. The civil appeals are accordingly dismissed. = Oil and Natural Gas Corporation Ltd. …Appellant VERSUS Official Liquidator of M/s. Ambica Mills Company Ltd. & Ors. ...Respondents = 2014 (April.Part ) http://judis.nic.in/supremecourt/filename=41421