PEGASUS ASSETS RECONSTRUCTION P.LTD. vs M/S HARYANA CONCAST LIMITED

The Supreme Court addressed the issue of whether a Company Court can control the sale of secured assets by a secured creditor under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The Court held that the SARFAESI Act grants secured creditors the right to enforce security interests without court intervention, thereby overruling the Punjab and Haryana High Court's decision that imposed restrictions on such sales. The Court affirmed that the Companies Act cannot impose fetters on the rights of secured creditors under the SARFAESI Act, leading to the dismissal of appeals that sought to challenge the sale process.