Jitendra Nath Singh vs Official Liquidator & Ors

The Supreme Court interpreted Sections 529 and 529A of the Companies Act, 1956, establishing that secured creditors and workmen have a pari passu charge over all properties of a company undergoing liquidation, not just those specifically mortgaged. The Court upheld the High Court's decision that the distribution of sale proceeds from the company's assets should be made on a pro rata basis to both secured creditors and workmen. The appeal challenging the High Court's ruling was dismissed, affirming the lower court's interpretation.