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Issues: Whether, after a recovery certificate has been issued by the Debt Recovery Tribunal in favour of secured creditors, the Official Liquidator can sell the mortgaged immovable assets in winding up proceedings, or whether such sale can be carried out only by the Recovery Officer under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.
Analysis: The governing scheme of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 was held to confer exclusive jurisdiction on the Tribunal for adjudication and on the Recovery Officer for execution of the recovery certificate. The Act was treated as having overriding effect under section 34, and the Company Court was held to have no control over execution of the recovery certificate or over sale of secured immovable assets covered by it. The Court also held that the presence of winding up proceedings does not revive the Company Court's power to direct sale of those assets through the Official Liquidator. Reliance on the pari passu charge reasoning in the company-law context was held inapplicable because that case did not concern the interaction between the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and the Companies Act, 1956.
Conclusion: The Official Liquidator has no authority to dispose of or sell immovable properties secured in favour of banks and financial institutions where a recovery certificate has been issued by the Debt Recovery Tribunal; the assets must be dealt with under the recovery proceedings before the Recovery Officer.
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