SWARAJ INFRASTRUCTURE PVT. LTD. vs KOTAK MAHINDRA BANK LTD.

The Supreme Court ruled that a secured creditor, having obtained a recovery certificate from the Debts Recovery Tribunal (DRT) under Section 19(19) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, cannot file a winding up petition under the Companies Act, 1956 without relinquishing its security. The Court emphasized that the Recovery of Debts Act is a special statute that confers exclusive jurisdiction to the DRT, thus barring the Company Court from entertaining such petitions. The Court upheld the Bombay High Court's dismissal of the appeals, affirming the principle that a secured creditor must choose between realizing its security or participating in winding up proceedings.