Pegasus Assets Reconstruction P.Ltd vs M/S Haryana Concast Limited & Anr

The Supreme Court held that under Section 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), a secured creditor can enforce security interests without court intervention, thus the Company Court or Official Liquidator cannot impose restrictions on the sale of secured assets. The Court distinguished the views of the Punjab and Haryana High Court from those of the Delhi High Court, ultimately allowing the appeal of Megnostar Telecommunications Pvt. Ltd. and disapproving the earlier judgment that imposed fetters on secured creditors' rights. The ruling clarifies the primacy of the SARFAESI Act over the Companies Act in matters of secured asset sales.