Debtor Entitled To Get Refund Of Amount Deposited Before HC Registry After Dismissal Of Writ Petition Challenging SARFAESI Proceedings: SC [Read Judgment]

"The 'secured creditor' would be entitled to proceed only against the 'secured assets' mentioned in the notice under Section 13(2) of the SARFAESI Act."

Only The Secured Creditor Can Initiate Action Against The Borrower Under SARFAESI Act: Karnataka HC [Read Order]

The Karnataka High Court has held that only the secured creditor, and no other person or entity, can initiate action against the borrower under the Secularization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI).Justice L Narayana Swamy and Justice R Devdas while setting aside the order passed by the Debt Recovery Appellate Tribunal (DRAT), upholding the demand and possession notices issued by L&T Financial Services, to Trishul Developers, said...

DRT Not Able To Focus On High-Value Cases: Raj HC Upholds Centre's Notification Raising Pecuniary Limit To Rs 20L [Read Judgment]

Observing that "small value cases" were not allowing the Debt Recovery Tribunals focus on "high-value cases" which would have otherwise led to significant recovery of public money, the Rajasthan High Court has upheld Centre's notification raising the threshold pecuniary limit for filing application for recovery of debts before the Debt Recovery Tribunal from Rs 10 Lakh to Rs 20 Lakh. A bench of Justice Mohammad Rafiq and Justice Narendra Singh Dhaddha held that "despite significant rise...

Additional Chief Judicial Magistrate Can Entertain Application U/s 14 SARFAESI Act: Kerala HC [Read Judgment]

The Kerala High Court has held that Additional Chief judicial Magistrate [ACJM] will have jurisdiction to entertain an application filed under Section 14 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI). In KO Anto vs. State of Kerala, Justice Raja Vijayaraghavan considered a petition filed under Article 227 of the Constitution of India challenging Ernakulam ACJM's order under Section 14 of SARFAESI Act and appointment of an...

Whether Chief Judicial Magistrate Has Jurisdiction To Entertain Applications U/s 14 SARFAESI Act? SC To Examine

Granting leave to directly appeal against Chief Judicial Magistrate's order, the Supreme Court noted that there are conflicting views by different High Courts with regard to the jurisdiction of the Chief Judicial Magistrate under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI). Section 14 of the SARFAESI Act empowers the Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking...

Tribunals CB [Day-1, Session-1] There Is A Strong View Point That Post-Retirement Appointments Is A Scar On Independence Of Judiciary, Says CJI

"There is no dispute that most of these tribunals are virtually non-functioning either for the lack of infrastructure or manpower...there is a very practical solution and the idea is to have as few tribunals as possible. And to ensure uniformity on the quasi-judicial side", remarked Chief Justice Ranjan Gogoi on Wednesday. The Constitution bench headed by Chief Justice was hearing on petitions challenging the provisions in Finance Act 2017 relating to various Tribunals Earlier, Senior...

"It Is Constitutionally Imperative For Govt To Take Care Of Those In Penury", Kerala HC Observes While Staying SARFAESI Proceedings [Read Order]

Expressing deep empathy with a borrower who got entangled in SARFAESI proceedings upon default of loan availed to meet medical expenses of his children, the High Court of Kerala sought to know from the Government about its schemes to provide relief to persons in distress."I am of the opinion that where people are pushed into deep distress and pathos on account of unbearable medical expenses for members of family, including children, the State Machinery should involve and give humanistic support...

SARFAESI: Borrower/Debtor Can File Securitisation Application At The Stage Of The Possession Notice, Holds SC

‘The object of providing a remedy against the wrongful action of a secured creditor to a borrower will be stultified if the borrower has to wait until a sale notice is issued, or worse still, until a sale actually takes place.’Setting aside a judgment of Allahabad High Court full bench, the Supreme Court on Thursday held that the borrower/debtor can approach the Debts Recovery Tribunal under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities...

Vijay Mallya Bought Ferrari 246 GTS; But Made No Deposit Before DRAT; Karnataka HC Dismisses His Plea Seeking Restoration Of Appeal Before DRAT [Read Order]

The Karnataka High Court has dismissed Vijay Mallya’s plea seeking restoration of his appeal filed before the Debt Recovery Appellate Tribunal (DRAT) that had dismissed his appeal as he did not deposit a sum of Rs 3,101 crore within prescribed time.The bench comprising Chief Justice Dinesh Maheshwari and Justice Krishna S. Dixit observed that the 2016 amendment to Section 21 of Recovery of Debts due to Banks and Financial Institutions Act, 1993 that restricted the power of DRAT to waive...

DRAT Has No Inherent Power To Take Suo Motu Cognizance In Public Interest, Reiterates Delhi HC [Read Order]

The Delhi High Court has expressed “surprise” over the Debts Recovery Appellate Tribunal (DRAT) exercising suo motu powers in public interest despite clear pronouncements of the Supreme Court that it has no such inherent power.A bench of Chief Justice Rajendra Menon and Justice V Kameswar Rao reiterated that the DRAT does not have any inherent power to take suo motu action in public interest.It said so while quashing a July 24 show cause notice issued by DRAT to Padam Singhee and others when...

‘Structure Of Debt Recovery Tribunals (DRTs) May Need Revisit’: SC Asks Centre To Look Into Suggestions Submitted By Amicus Curie

The Supreme Court has made an observation that the structure of Debt Recovery Tribunals (DRTs) may need revisit taking into account the suggestion for permanent cadre, autonomous selection procedure, autonomous accountability and disciplinary mechanism, finality subject only to jurisdiction of constitutional courts, to uphold the rule of law and independence of judiciary.The bench of Justice AK Goel, Justice RF Nariman and Justice Navin Sinha made this observation while perusing the suggestion...

No Application Can Be Filed Against Taking ‘Symbolic Possession’ Before DRT: Allahabad HC (FB) [Read Judgment]

The full bench of Allahabad High Court, in M/s N.C.M.L. Industries Ltd. through Director and another Vs. Debts Recovery Tribunal, Lucknow and others, has held that taking “symbolic possession” or issuance of possession notice, meeting with any resistance, cannot be treated as “measure”/s taken under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and, therefore, the borrower at that stage cannot file an application under...