Important Point-There is nothing in Securitisation Act would in any way make Section 125 or part V of Companies Act applicable to any security interest created under Securitisation Act or will have any effect on it.

V.M. Pancholi, J.

The applicant-Kotak Mahindra Bank Limited has taken out the Judges' summons in which the following relief is prayed :

"1(A) That this Hon'ble Court may be pleased to direct the respondent Official Liquidator who is appointed as Provisional Liquidator pursuant to order dated 8.2.2011 made by this Hon'ble Court in Company Petition No. 50/2010, to hand over possession of the secured assets particularly described in the schedule annexed hereto and marked as Annexure-"A", to the applicant who has already initiated measures under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 prior to the appointment of the Provisional Liquidator and permit the applicant to proceed further in relation thereto, in the interest of justice."

2. Heard learned advocate Mr. Navin K. Pahwa for the applicant, learned advocate Ms. Amee Yagnik for respondent no. 1-Official Liquidator and learned advocate Mr. Ashok L. Shah with learned advocate Mr. Pawan C. Godiawala for respondent no. 2.

3. Learned advocate Mr. Pahwa for the applicant submitted that the State Bank of India (hereinafter referred to as 'S.B.I.' for the sake of convenience) had granted various credit facilities to Clarisis Organics Limited (hereinafter referred to as the 'Company' for the sake of convenience). The said credit facilities were renewed from time to time. Against the said credit facilities, the company had mortgaged the properties being land and building bearing survey no. 489, 502, 502/1/A, 502/1/B, 502/1/C, 502/2-P and consolidated survey no. 489 situated at village Mokhsi, Taluka Savli, District Vadodara admeasuring 30,451 sq.mtrs. The Company had also hypothecated all its movables being raw materials, stock in progress, finished goods, packing materials, plant and machinery etc., except plant and machinery, other movables from 3.4.D.C.N.B. unit and 3.4 D.C.A. project. The plant and machinery and other movables of the aforesaid unit and project have been hypothecated to Technology Information, Forecasting and Assessment Council (hereinafter referred to as 'T.I.F.A.C.' for the sake of convenience).

3.1 Learned advocate Mr. Pahwa further submitted that the Company had initially created mortgage in favour of ICICI Bank Limited, IDBI Bank Limited, I.F.C.I. Limited and SBI by way of joint mortgage by deposit of title deeds dated 24.4.1991 in respect of the aforesaid immovable property. However, thereafter, credit facilities available by the Company from ICICI Limited, IDBI Limited and I.F.C.I. Limited were settled and thereby only S.B.I. remained the exclusive first charge holder in priority of all other charges over the immovable property. At this stage, learned advocate further submitted that on 23.3.2006, the Deed of Assignment was executed between S.B.I. and the applicant-bank whereby SBI assigned its debts due and payable by the company and assigning out all the aforesaid credit facilities in favour of the applicant. Thus, in pursuance to the Deed of Assignment, applicant has become full and absolute owner of the debts payable by the company to S.B.I. Learned advocate, therefore, submitted that the applicant-bank is the only bank legally entitled to receive repayment of amount or any part thereof including the right to file proceedings in its own name and to take all other steps as may be required to enforce its interest in the secured assets.

3.2 Learned advocate Mr. Pahwa further contended that the company failed and neglected to pay the amount payable to the applicant and, therefore, applicant issued demand notice dated 15.11.2006 to the company under the provisions of Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI' Act for the sake of convenience). By way of the said notice, the company was called upon to repay the amount mentioned in the said notice together with inte