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Issues: Whether the Company Court or the appellate court could examine a challenge to SARFAESI action on the ground of limitation, and whether the secured creditor was required to proceed only through the Company Court despite the company being in liquidation.
Analysis: The secured creditor's remedies under the SARFAESI Act were treated as operating outside the winding up, subject only to protection of workmen's dues under Sections 529 and 529A of the Companies Act, 1956. The judgment held that disputes concerning the validity of SARFAESI measures, including the plea that the action was time-barred, fall within the statutory remedy under Section 17 before the Debt Recovery Tribunal, and that Section 34 bars the jurisdiction of ordinary courts on such matters. The court also noted that the secured creditor was entitled to realize its security under the SARFAESI framework and that the Company Court's role was limited to ensuring that the Official Liquidator's presence protected the workmen's interest in distribution of sale proceeds.
Conclusion: The challenge to the SARFAESI proceedings on limitation and related grounds was not maintainable before the Company Court or in the appeal, and the appellant was required to pursue the remedy before the Debt Recovery Tribunal.
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