PEGASUS ASSETS RECONSTRUCTION P. LTD. versus M/S. HARYANACONCAST LIMITED &ANR.

PEGASUS ASSETS RECONSTRUCTION P. LTD. versus M/S. HARYANACONCAST LIMITED &ANR.

The Company Court or Official Liquidator cannot control or interfere in the sale of secured assets by a secured creditor under the SARFAESI Act; the SARFAESI Act is a complete code harmonized with necessary provisions from the Companies Act; sale confirmed after fair auction does not require interference due to subsequent higher offer unless fraud or collusion is shown.

Parties
Appellant: Pegasus Assets Reconstruction P. Ltd.; Respondent: M/s. Haryana Concast Limited; Respondent: HSIIDC (Haryana State Infrastructure and Industrial Development Corporation); Petitioner/intervener: Vinod Rajaliwala; Auction Purchaser/respondent: M/s. Venus Realcon Pvt. Ltd.; Intervener: M/s. Himalayan Infra Projects Private Limited; Appellant: Megnostar Telecommunications Private Limited
Jurisdiction
India
Judgment Date
29 December 2015
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals dismissed except appeal for declaration of law; sale confirmed.
Legal Topics
SARFAESI Act Enforcement, Company Under Liquidation, Auction Sale of Secured Assets
Company Law Banking & Finance Insolvency Law SARFAESI Act Enforcement Company Under Liquidation Auction Sale of Secured Assets

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Parties

Pegasus Assets Reconstruction P. Ltd.

Appellant

M/s. Haryana Concast Limited

Respondent

HSIIDC (Haryana State Infrastructure and Industrial Development Corporation)

Respondent

Vinod Rajaliwala

Petitioner/intervener

M/s. Venus Realcon Pvt. Ltd.

Auction Purchaser/respondent

M/s. Himalayan Infra Projects Private Limited

Intervener

Megnostar Telecommunications Private Limited

Appellant

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether Company Court or Official Liquidator can control or interfere in respect of sale of secured asset by a secured creditor under SARFAESI Act.
  2. 2 Whether sale confirmed by court requires interference when higher offer is made after confirmation.

Ratio Decidendi

The Company Court or Official Liquidator cannot control or interfere in the sale of secured assets by a secured creditor under the SARFAESI Act; the SARFAESI Act is a complete code harmonized with necessary provisions from the Companies Act; sale confirmed after fair auction does not require interference due to subsequent higher offer unless fraud or collusion is shown.

Court Disposition

Appeals dismissed except appeal for declaration of law; sale confirmed.

Orders

  • Civil Appeal No. 3646 of 2011 allowed for declaration of law without interfering with sale.
  • Civil Appeal No. 14736/2015 dismissed.