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Issues:
1. Application seeking directions to Official Liquidator to handover possession of assets for action under SARFAESI Act. 2. Conflict between SARFAESI Act and Companies Act regarding sale of assets of company-in-liquidation. Analysis: Issue 1: The application under section 446 of the Companies Act requested directions for the Official Liquidator to hand over possession of assets of the company-in-liquidation for action under section 13(4) of the SARFAESI Act. The application was contested by ex-directors of the company, arguing that the Companies Act provisions prevail over the SARFAESI Act. The Court acknowledged the pre-eminent powers of the Company Court in dealing with assets of a company-in-liquidation. The SARFAESI Act, while empowering secured creditors to take possession of assets, also recognizes the authority of the Company Court in such matters. Issue 2: The Court noted that the SARFAESI Act operates in addition to, and not in derogation of, the Companies Act. When a winding-up order is in effect or an Official Liquidator is appointed, no other legal proceedings can be initiated against the company without the Court's permission. The Court directed that the sale of the company's assets be conducted by the secured creditor in collaboration with the Official Liquidator, ensuring compliance with the Companies Act. The Court emphasized the importance of securing the best price for assets through a transparent sale process, subject to Court confirmation. In conclusion, the Court allowed the application, permitting the IFCI to proceed with the sale of assets in coordination with the Official Liquidator, ensuring compliance with the Companies Act and seeking Court confirmation for the sale.
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