https://www.taxtmi.com/caselaws?id=112485 A Company Court may permit a reconstruction company to proceed under the SARFAESI Act while retaining supervisory control over appropriation and disbursal of sale proceeds, where winding up remains pending. The directions were treated as supervisory rather than prohibitory because they did not prevent possession or sale of secured assets, but merely required leave before appropriation to protect statutory priorities. The Court noted that, if winding up were eventually ordered, compliance with section 13(9) of the SARFAESI Act and payment of labour dues protected by section 529A of the Companies Act would have to be secured. The directions were upheld and the reconstruction company's claim to unfettered freedom was rejected. en-us Wed, 22 Apr 2009 00:00:00 +0530 Mon, 10 Nov 2014 19:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112485 A Company Court may permit a reconstruction company to proceed under the SARFAESI Act while retaining supervisory control over appropriation and disbursal of sale proceeds, where winding up remains pending. The directions were treated as supervisory rather than prohibitory because they did not prevent possession or sale of secured assets, but merely required leave before appropriation to protect statutory priorities. The Court noted that, if winding up were eventually ordered, compliance with section 13(9) of the SARFAESI Act and payment of labour dues protected by section 529A of the Companies Act would have to be secured. The directions were upheld and the reconstruction company's claim to unfettered freedom was rejected. Case-Laws Companies Law Wed, 22 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112485