The central issue revolves around whether the RDB Act overrides the Companies Act in matters of debt recovery when a winding-up petition is pending against the debtor company The case ... specifically examines whether Allahabad Bank having obtained a decree under the RDB Act can proceed with the sale of the company's assets without the intervention of the Company Court and how the sale proceeds should be distributed among creditors especially concerning the claims of Canara Bank as a secured creditor The Allahabad Bank v Canara Bank case is a landmark decision that clarifies the relationship between the RDB Act and the Companies Act It establishes the primacy of the RDB Act in matters of debt recovery by banks and financial institutions ensuring that these entities can recover their dues expeditiously even when winding-up proceedings are pending against the debtor company The judgment also defines the scope of the Company Court's jurisdiction in such cases and clarifies the applicability of Section A of the Companies Act concerning workmen's dues

Read more