SARFAESI enforcement against liquidated company assets may continue, subject to protection of workmen's dues and liquidator remedies.

A secured creditor's enforcement under SARFAESI continues against secured assets of a company in liquidation, and the company court need not intervene in that process. The statutory scheme preserves the Official Liquidator's role to protect workmen's dues under Section 529-A of the Companies Act, 1956, while allowing the secured creditor to proceed with auction and sale under the SARFAESI mechanism. If the liquidator has a grievance, the prescribed remedy lies within Sections 17 and 18 of SARFAESI. The text therefore states that the applicant could continue with the auction process subject to the statutory protection of workmen's claims.

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Issues: Whether the applicant, as an assignee secured creditor, could continue with the auction and sale process under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 in respect of assets of a company in liquidation, notwithstanding the notice of the Official Liquidator and the requirements concerning workmen's dues under the Companies Act, 1956.

Analysis: The right of a secured creditor to enforce its security interest under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is not subject to intervention by the court or tribunal. In the case of a company in liquidation, the statutory scheme preserves the Official Liquidator's role for safeguarding the interests protected by Section 529-A of the Companies Act, 1956, while still permitting the secured creditor to proceed under the SARFAESI mechanism. The remedy of the liquidator, if any grievance arises, lies within the framework of Sections 17 and 18 of the SARFAESI Act, 2002.

Conclusion: The applicant was entitled to continue with the auction process and the application was allowed.

Ratio Decidendi: A secured creditor may proceed under the SARFAESI Act against secured assets of a company in liquidation, subject to the statutory protection of workmen's dues under Section 529-A of the Companies Act, 1956, and without requiring interference by the company court.

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