Rajasthan Financial Corpn. & Anr vs The Official Liquidator & Anr

The Supreme Court held that secured creditors, such as the Rajasthan Financial Corporation and the Rajasthan State Industrial Development and Investment Corporation, must exercise their rights under Section 29 of the State Financial Corporations Act, 1951 in a manner consistent with the rights of workmen represented by the Official Liquidator under Section 529-A of the Companies Act. The Court affirmed the lower court's decision that the secured creditors could not realize their securities independently of the liquidation process, emphasizing the pari passu principle. The appeal was dismissed, upholding the High Court's ruling.