https://www.taxtmi.com/caselaws?id=433673 A secured creditor under the Companies Act, 1956 may either relinquish security and prove in liquidation or enforce the security outside winding-up. Mere filing of a proof of debt does not amount to relinquishment; a conscious election to join liquidation is required. Here, symbolic possession under SARFAESI and initiation of DRT proceedings showed an election to realise the security outside winding-up, so the creditor was not required to hand the assets to the Official Liquidator. Where the creditor stands outside winding-up and proceeds under SARFAESI, prior permission of the Company Court is not a precondition for taking possession or selling the secured assets, and the court's role is limited to statutory safeguards for workmen and other protected interests. en-us Wed, 01 Feb 2023 00:00:00 +0530 Mon, 06 Feb 2023 22:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=433673 A secured creditor under the Companies Act, 1956 may either relinquish security and prove in liquidation or enforce the security outside winding-up. Mere filing of a proof of debt does not amount to relinquishment; a conscious election to join liquidation is required. Here, symbolic possession under SARFAESI and initiation of DRT proceedings showed an election to realise the security outside winding-up, so the creditor was not required to hand the assets to the Official Liquidator. Where the creditor stands outside winding-up and proceeds under SARFAESI, prior permission of the Company Court is not a precondition for taking possession or selling the secured assets, and the court's role is limited to statutory safeguards for workmen and other protected interests. Case-Laws Companies Law Wed, 01 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=433673