ANDHRA BANK vs OFFICIAL LIQUIDATOR

The Supreme Court referred the matter to a larger bench due to doubts regarding the legal principles established in Allahabad Bank vs. Canara Bank [(2000) 4 SCC 406]. The case involved the recovery of dues by the Appellant-Bank from New Tobacco Limited following a scheme of amalgamation and subsequent winding-up proceedings. The Court held that the issues surrounding the rights of creditors and the management of company assets during liquidation require further examination, thus necessitating a three-judge bench for clarification.