In Brief
Asset Reconstruction Company (India) Ltd assigned a loan from State Bank of India sought to enforce a security interest in property of Lalitha Cement Industries Ltd, a company undergoing winding-up. The Chief Judicial Magistrate appointed a receiver under the SARFAESI Act. The High Court set aside this order, holding that the Magistrate needed Company Court permission and that facts about the winding-up were suppressed. The Supreme Court held that a Company Court has no control over a secured creditor's SARFAESI enforcement powers, set aside the High Court's interim order, and directed the High Court to expedite its final hearing on the writ petition.
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