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SUPREME COURT OF INDIA

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PETITIONER:

ALLAHABAD BANK

Vs.

RESPONDENT:

CANARA BANK & ANOTHER

DATE OF JUDGMENT: 04/04/2000

BENCH:

M.J.Rao, N.S.Hegde

JUDGMENT:

M.JAGANNADHA RAO,J.

Leave granted.

The case raises issues relating to the impact of the

provisions of the Recovery of Debts due to Banks and

Financial Institutions Act, 1993 (hereinafter called the RDB

Act ) on the provisions of the Companies Act, 1956. The

immediate dispute before us is between two nationalised

Banks, the Allahabad Bank (appellant) on the one hand which

has obtained a simple money decree against the

debtor-company (M/s M.S.Shoes (East) Co. Ltd. from the

Debt Recovery Tribunal at Delhi under the RDB Act and the

Canara Bank on the other, whose claim as a secured creditor

is still pending before the same Tribunal at Delhi against

the same company. The Allahabad Bank has appealed before us

against an order passed by the learned Company Judge under

sections 442 and 537 of the Companies Act, (in a winding up

petition by Ranbaxy Ltd.) staying the sale proceedings taken

out by the Allahabad Bank before t