Laxmi Fibres Ltd vs A.P. Industrial Dev. Corpn. Ltd. & Ors

The Supreme Court addressed the jurisdiction of the Official Liquidator in adjudicating claims of statutory corporations under the SFC Act, specifically Section 29 of the State Financial Corporations Act, 1959. The Court held that the Official Liquidator does not possess the power to independently adjudicate and quantify claims when the Company Judge has allowed statutory corporations to pursue their claims outside the liquidation proceedings. The ruling emphasized the necessity for the corporations to prove their claims before the Official Liquidator as a condition for appropriating sale proceeds from the liquidation process.