SARFAESI Act is a Complete Code and there is no Lacuna or Ambiguity to warrant reading something more into it; SC [Read Judgment]

There is no plausible reason as to take recourse to any provisions of the Companies Act and permit interference in the proceedings under the SARFAESI Act either by the Company Judge or the liquidator, the Court said.The Supreme Court, has held that the Company Judge cannot interfere in a proceedings by a secured creditor to realize its secured interests as per provisions of the SARFAESI Act. The Punjab and Haryana High Court had upheld the view of Company Court and approved of certain fetters placed upon secured creditors whereas the Delhi High Court held that the company judge or the official liquidator cannot have any say in the sale of secured assets by the secured creditors under the SARFAESI Act. The Delhi High Court answering the issue had said ‘If it were to be held that the Official Liquidator is to be also associated with the sale, it will naturally open up the fora of the Company Court also for entertaining matters relating to such sale and which as aforesaid is not only likely to lead to conflicts but is also contrary to the spirit of the SARFAESI Act of sale being without the intervention of the Court.” SARFAESI Act itself takes care of interest of workers The Court observed that sufficient provisions under the SARFAESI Act and the Rules are there to protect the interest of workers and to realize their dues and no order is required by the Company Judge for association of the Official Liquidator. If the view taken by Punjab & Haryana High Court in Pegasus is accepted, there shall be a conflict of rights and interest of the secured creditor who have the right and liberty to realize their secured interest in accordance with the provisions of the SARFAESI Act on one hand, and the statutory rights and liability of the Official Liquidator acting under the orders of the Company Judge as per provisions of the Companies Act, on the other.