Judgment Permod Kohli, J. 1. This order shall dispose of Company Application No. 110 of 2006 in C.A. No. 537 of 2005 in C.P. No. 9 of 1994 filed by Parkash Aggarwal and Company Application No. 452 of 2007 in C.A. No. 537 of 2005 in C.P. No. 9 of 1994, filed by Purnima Aggarwal wife of Parkash Aggarwal, as in both these applications, the question of law and facts involved are the same. 2. The applicant in both these applications are the guarantors for the company in liquidation in respect to the loan secured from the State Bank of India as also the Haryana State Financial Corporation. C.A. No. 110 of 2006 has been filed by Parkash Aggarwal, whereas C.A. No. 452 of 2007 has been filed by Purnima Aggarwal wife of Parkash Aggarwal son of Malook Chand Aggarwal, for impleading as party-respondents. 3. It is admitted case of the parties that M/s Malook Chand Agro Oils Limited, a company in liquidation incorporated under the Companies Act, 1956 , was ordered to be wound up vide order dated 2.11.1995. The company had secured loan from the State Bank of India as also the Haryana Financial Corporation and these two applicants are the guarantors. Parkash Aggarwal has stated in his application that during the year 2002-2004, he has paid an amount of Rs. 17,72,123/- to the Haryana Financial Corporation and Rs. 15,50,530/- to the State Bank of India as a guarantor of the secured creditors. Another amount of Rs. 53,427/- was deposited with the Official Liquidator as advertisement costs for the sale of the assets of the company and further an amount of Rs. 1,50,000/- was paid to the Haryana Financial Corporation on 23.08.2005. This applicant also claimed an amount of Rs. 33,80,080/- from the Official Liquidator as secured creditor. It has been brought on record that the company in liquidation through its Ex-Management settled with the Haryana Financial Corporation and the State Bank of India for an amount of Rs. 28,32,720/- and Rs. 65,00,000/-, respectively, as one time settlement. However, the settlement could not be finalized and the scheme lapsed. Again the Ex-Management settled with the State Bank of India for revised amount of Rs. 85,50,000/- out of which Rs. 15,50,000/- was paid by Parkash Aggarwal in his capacity as a guarantor. 28,32,720/- and Rs. 65,00,000/-, respectively, as one time settlement. However, the settlement could not be finalized and the scheme lapsed. Again the Ex-Management settled with the State Bank of India for revised amount of Rs. 85,50,000/- out of which Rs. 15,50,000/- was paid by Parkash Aggarwal in his capacity as a guarantor. Similarly a settlement was arrived at with the Haryana Financial Corporation under the scheme known as Compromise Settlement of Chronic Non-Performing Assets of Haryana Financial Corporation 2005 and an amount of Rs. 1,50,000/- was paid on 23.08.2005 being ten percent of the outstanding amount. However, the Haryana Financial Corporation did not settle the account completely and a Civil Writ Petition No. 1568 of 2006 has been moved by the applicant Parkash Aggarwal in the High Court of Punjab and Haryana at Chandigarh. The Honble High Court vide order dated 1.2.2006 issued a direction to the Haryana Financial Corporation to take a final decision on the applicants application dated 23.08.2005 as expeditiously as practicable and in any case, not later than six weeks from the date of receipt of the representation. 4. In C.A. No. 452 of 2007 which has been filed by Pumima Aggarwal, she has claimed that the Company in liquidation settled with the State Bank of India as one time settlement under the OTS scheme of the Bank, for a sum of Rs. 85.56 lacs, out of which the applicant has deposited Rs. 19 lacs on 28.03.2006, Rs. 6 lacs on 15.4.2006 and Rs. 5 lacs on 28.05.2006. In all, the applicant has paid a sum of Rs. 30 lacs to the secured creditors. Both the applicants claimed that since they have paid the amount to the secured creditors, they may be impleaded as secured creditors-parties to the proceedings as they have stepped into the shoes of the secured creditors. 5. These applications have been opposed by the Haryana Financial Corporation. As far the State Bank of India is concerned, it has admitted the settlement with the company in liquidation. The Haryana Financial Corporation, however, claims that it has first charge over the assets of the company in liquidation and, thus, after the settlement of the claims of the workers, the Corporation is entitled to the entire amount. The Haryana Financial Corporation has lodged a claim for Rs. 99.17 lacs with the Official Liquidator and is claiming entire amount from the company in liquidation. The Haryana Financial Corporation has lodged a claim for Rs. 99.17 lacs with the Official Liquidator and is claiming entire amount from the company in liquidation. It is, however, admitted position that the Haryana Financial Corporation settled for Rs. 28,32,720/- under the NPA Compromise Scheme on 15.01.2004 and received an amount of Rs. 17.72 lacs approximately. It has been stated that the assets of the company were sold in favour of Parkash Aggarwal for a total sale consideration of Rs. 1,03,51,149/- on 17.12.2004 in terms of order passed in C.A. No. 719 of 2004. It is further mentioned that in the meetings held on 20.02.2006, the Haryana Financial Corporation withdrew one time settlement earlier made with the Ex-management. However, the claim of the Haryana Financial Corporation as secured creditors was adjudicated and determined to the extent of Rs. 1,89,932/- and that of the State Bank of India to the extent of Rs. 1,09,95,000/- by the Official Liquidator. In addition to this, they are also required to pay watch and ward expenses. Out of the aforesaid determined amount, an amount of Rs. 17,72,123/- stands paid to the Haryana Financial Corporation and Rs. 15,50,530/- to the State Bank of India by the Ex-Directors. According to the Official Liquidator, an amount of Rs. 4,17,809/- plus winding up expenses of Rs. 3,29,813/- is payable to the Haryana Financial Corporation and an amount of Rs. 69,99,470/- plus winding up expenses of Rs. 53,427/- is payable to the State Bank of India, in addition to the amount paid by the Ex-Directors as mentioned hereinabove. It is further mentioned that the Haryana Financial Corporation challenged the order of the Official Liquidator dated 20.02.2006 before the Company Court vide Company Appeal No. 9 of 2006 in C.A. No. 537 of 2005 in C.P. No. 9 of 1994 which has been dismissed vide order dated 3.7.2007. An appeal preferred before the Division Bench of this Court has also been dismissed on 28.9.2007. 6. During the pendency of these applications, the entire claim of the State Bank of India stands settled which includes Rs. 70 lacs as one time settlement and Rs. 13.55 lacs as interest. The amount of interest was ordered to be paid by the Official Liquidator in terms of the order dated 28.3.2008. Payment of these amounts, however, was subject to the final outcome of the proceedings. 7. 70 lacs as one time settlement and Rs. 13.55 lacs as interest. The amount of interest was ordered to be paid by the Official Liquidator in terms of the order dated 28.3.2008. Payment of these amounts, however, was subject to the final outcome of the proceedings. 7. A similar issue came up for consideration in case of Punjab State Industrial Development Corporation Limited v. Punjab National Fertilizers and Chemicals Limited (in liquidation) (2006-3)144 P.L.R. 402. In the aforesaid case, the Punjab State Industrial Development Corporation Limited paid the liability of the company in liquidation to the Banks and financial institutions in its capacity as a guarantor and approached the Official Liquidator for being substituted as secured creditor in place of the bank/financial institution. On consideration of the issue, this Court held as under: ...It is an act between the surety and the creditor. It is an act of substitution of surety as secured creditor in terms of deed of guarantee and, therefore, I have no hesitation to hold that the applicant is a secured creditor and is entitled to recover the amount from the company in liquidation and has stepped into the shoes of the bank/financial institution. Both these company applications stand disposed of in the above terms. 8. In view of the above circumstances and the ratio, these applications are allowed. 9. The applicants are impleaded as Secured Creditors to the extent of amounts paid by them to the Haryana Financial Corporation and the State Bank of India, respectively on behalf of Company in liquidation as they have stepped into the shoes of secured creditors.