Ofact 4 Of 1996 vs Official Liquidator

The Supreme Court examined the legality of conditions imposed by the High Court on a financial corporation seeking to stay outside liquidation proceedings under Section 29 of the State Financial Corporations Act, 1951 and Section 529A of the Companies Act. The Court held that the conditions requiring the corporation to discharge liabilities to workers and to inform the Official Liquidator before selling properties were lawful and necessary to protect workers' interests. The appeals against the High Court's orders were dismissed, affirming the conditions imposed.