Pegasus Assets Reconstruction P. Ltd. v. Haryana Concast Limited and Ors. - (Supreme Court) (29 Dec 2015)

Company Court to not wield power at winding-up under SARFAESI

MANU/SC/1489/2015

Civil

Provisions of the Companies Act, 1956 in respect of dues of workmen and their protection are incorporated under the Securitisation Act, 2002 and legal recourse cannot be taken under the former. Dispute arose from the Company Judge imposing conditions on the Appellant, an asset reconstruction company, while passing orders for winding up of a company under the Securitisation Act. The Court confirmed that powers under the Companies Act cannot be used by the Company Judge to interfere with proceedings by a secured creditor realizing its secured interests as per the SARFAESI Act.

Relevant : Allahabad Bank v. Canara Bank MANU/SC/0262/2000 Bank of Maharashtra v. Pandurang Keshav Gorwardkar MANU/SC/0500/2013 Arun Kumar Agrawal v. Union of India MANU/SC/1146/2013 Section 13 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Act

Tags : SARFAESI COMPANIES ACT CONDITIONS SECURED ASSET