KERALA STATE FINANCIAL ENTERPRISES LTD. vs OFFICIAL LIQUIDATOR, H/C OF KERALA

The Supreme Court addressed the applicability of Section 125 of the Companies Act, 1956 in the context of recovery proceedings initiated under the Kerala Revenue Recovery Act, 1968. The Court held that an order of attachment does not create a charge on the property and that the provisions of the Companies Act prevail over the special statute in terms of creditor rights. The appeal by the Government company was dismissed, affirming that without a registered charge, the dues remain unsecured against the liquidator's claims.