No idea. I get parts of what you describe, but there's too much additional information lacking, to read a schematic from it unambiguously (tl;dr: could you draw it?).
I don't get what purpose a 723 is supposed to serve here, unless it's one of those early bastard switchers (ab)using standard components in nonstandard ways. (There were several SMPS circuits using 723, and yes even LM317.) These usually perform poorly. But the fact that an SCR is fast enough to manipulate the current sense transformer... is consistent with that.
There's not usually much point to foldback current limiting in a buck converter, but it's neat from time to time. (Hiccup limiting is very common these days, partly because it implements an aggressive foldback, but also because it's almost trivial to implement -- it's almost unavoidable when the regulator is self-powered, as most offline converters do.)
It might also be mandatory with other compromises in the circuit. For example, a hysteretic controller won't be very well behaved at low output voltages, for which a foldback characteristic could be used to tame it.
In any case, though I don't have a feel for the particulars of this circuit, it's entirely possible that an SCR might be used as a combination comparator and sense amp, and yes, that could be used to implement limiting or foldback, when wired appropriately.
Tim