In Brief
Kotak Mahindra Bank sought to wind up debtor companies after obtaining DRT decrees and recovery certificates totaling ₹48 crores. The companies contested the winding-up petition, arguing that secured creditors cannot file such petitions without surrendering security, and that the Recovery of Debts Act grants exclusive jurisdiction to DRTs. The Supreme Court held that secured creditors may file winding-up petitions under the Companies Act without pre-filing relinquishment of security. The winding-up proceeding is not a "recovery of debts" proceeding, so the Recovery Act's jurisdictional bar does not apply. Security relinquishment is required only at proof-of-claim stage after a winding-up order. Pursuing concurrent remedies under both statutes is not improper election but legitimate use of available rights. Appeals dismissed.
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