Secured creditor sale in liquidation allowed only under court control, with proceeds subject to approval.

A secured creditor exercising statutory powers may be permitted to sell assets of a company in liquidation, but the sale remains confined to the identified assets and subject to the Court's approval. The Court's supervisory jurisdiction in winding up also extends to the use, disbursement, or distribution of sale proceeds, which cannot be dealt with independently by the creditor. Permission was therefore granted only on that controlled basis, preserving the Court's oversight over realisation and application of liquidation assets.

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Issues: Whether the applicant corporation could be permitted to sell the assets of the company under liquidation and deal with the sale proceeds during winding up proceedings.

Analysis: The application concerned assets already taken over by the corporation under its statutory powers, while the company was in winding up. The relief granted balanced the corporation's right to realise the assets with the supervisory jurisdiction of the Court in liquidation matters. Permission was therefore confined to the identified assets, and the sale as well as the use or distribution of the proceeds was placed under the Court's approval.

Conclusion: The corporation was permitted to sell the assets mentioned in its affidavit, but only subject to approval of the Court, and the sale proceeds could be disbursed or utilised only with such approval.

Ratio Decidendi: In winding up proceedings, a secured creditor exercising statutory power to realise assets may be permitted to proceed, but the sale and subsequent application of the proceeds remain subject to the control and approval of the Court.

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