LAXMI FIBRES LTD. vs A.P. INDUSTRIAL DEV. CORPN. LTD. .

The Supreme Court ruled that the Official Liquidator does not possess the jurisdiction to adjudicate and quantify claims of statutory corporations when the Company Judge has allowed them to pursue their rights under Section 29 of the State Financial Corporations Act, 1959. The Court emphasized that the sale proceeds from the liquidation must be held in interest-earning deposits until the Official Liquidator quantifies the claims as per Section 529A of the Indian Companies Act. The judgment confirmed the conditions imposed by the Company Judge regarding the sale of assets and the handling of proceeds.