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Issues: Whether the Official Liquidator's application challenging the sale conducted under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act was maintainable before the Company Court.
Analysis: The winding up petition had been presented before the secured creditor proceeded with possession and sale under the SARFAESI framework. The Court compared the Companies Act provisions dealing with leave of the Company Court and void sales with the SARFAESI Act provisions giving the secured creditor power to enforce security without court intervention and containing an overriding clause. Relying on the line of authority recognising the special statutory remedy under SARFAESI and the jurisdiction of the Debt Recovery Tribunal under Section 17 to examine measures taken by the secured creditor, the Court held that the Official Liquidator could not bypass that forum and invoke the Company Court to set aside the auction sale.
Conclusion: The application was not maintainable before the Company Court and the challenge to the sale had to be pursued before the Debt Recovery Tribunal.
Ratio Decidendi: Where a secured creditor enforces security under SARFAESI, the remedy to question the sale or related measures lies before the Debt Recovery Tribunal under Section 17, and the Company Court cannot be invoked to set aside such sale despite pending winding up proceedings.
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