SARFAESI Act Archives

Grounds setting aside sale under SARFAESI

Confirmed sale under SARFAESI cannot be set aside on mere irregularities except on grounds of collusion, fraud, inadequate pricing or underbidding: SC

“‘Henderson Principle’ is a core component of the broader doctrine of abuse of process, aimed at enthusing in the parties a sense of sanctity towards judicial adjudications and determinations. It ensures that litigants are not subjected to repetitive and vexatious legal challenges. This rule not only supports the finality of judgments but also underscores the ideals of judicial propriety and fairness.”

Op Eds OP. ED.

Will C. Bright v. Distt. Collector herald dilution of SARFAESI Act?

by K. Pattabhi¹, K.P. Hemanth Kumar² and Barathan B.³

Case Briefs High Courts

‘Jurisdiction of Civil Courts is not barred from adjudicating a contractual dispute’ says Delhi High Court in case against Yes Bank Ltd.

‘The rule of amendment has been termed as rule of justice, equity, and good conscience which needs to be exercised in the larger interest of doing full and complete justice to parties before the Court.’

Cases Reported SCC Weekly

2024 SCC Vol. 6 Part 4

Arbitration and Conciliation Act, 1996 — Ss. 34 and 37 — Interference with award by Court: Law regarding limited jurisdiction of Court

Case Briefs High Courts

Whether Housing Finance Company can recover loan amount of less than ₹20 lakh under SARFAESI Act? MP High Court answers

MP High Court held that the writ petition is maintainable due to the pure legal questions involved regarding the applicability of SARFAESI Act provisions to HFCs for amounts below the Rs. 20 Lakhs threshold.

Op Eds OP. ED.

Upgradation of NPA Account – Whether Permissible After Issuance of Demand Notice under Section 13(2) of the Sarfaesi Act

by Prashant Tripathi† and Hrishitha Velore††

Master Direction Asset Reconstruction Companies

Legislation Updates Notifications

Reserve Bank of India issues Master Direction to Asset Reconstruction Companies

Reserve Bank of India issues Master Direction to ensure prudent and efficient functioning of Asset Reconstruction Companies

Op Eds OP. ED.

Decoding Mortgage Redemption in Banking

by Abhishek Saini†

Case Briefs Supreme Court

Banks can forfeit entire earnest money and not just extent of loss suffered by it due to auction purchaser’s default: SC

Any dilution of the forfeiture provided under Rule 9(5) of SARFAESI Rules would result in entire auction process under SARFAESI Act being disregarded by mischievous auction purchasers through sham bids, thereby undermining the overall object of the Act of promoting financial stability, reducing NPAs and fostering a more efficient and streamlined mechanism for recovery of bad debts.

Law Firms News News

SAM advises UV Asset Reconstruction Company Limited in Enforcement of security interest against Burnpur Cement Limited

Shardul Amarchand Mangaldas advises UV Asset Reconstruction Company Limited (“UV”) in enforcement of security interest against Burnpur Cement Limited (“BCL”) in its

Op Eds OP. ED.

Right of Redemption and the Amended Section 13(8), SARFAESI Act – Celir LLP v. Bafna Motors (Mumbai) (P) Ltd.: A case comment

by Srihari Saranathan†

Case Briefs High Courts

Delhi High Court| Remedy under Section 13(10) of SARFAESI Act cannot be considered as a remedy independent of the RDB Act

The Court is unable to accept that the legislative intent is to provide parallel regimes for the recovery of debts. The provisions of Section 13(10) of the SARFAESI Act, thus, cannot be interpreted in the manner as contended on behalf of the petitioner.

Op Eds OP. ED.

Sale Certificate under SARFAESI Act—Whether Registration Mandatory?

by Prashant Tripathi†

Op Eds OP. ED.

Whom to Pay First: A Critical Analysis of the Position of Secured Creditors in the Current Regime

by Govinda Asawa† and Pranay Agarwal††

Case Briefs Supreme Court

Section 13(8) of SARFAESI Act| Right of redemption of mortgage extinguishes on publication of auction notice: Supreme Court

The respondents in the instant matter constituted the borrower, guarantor and the bank (secured creditor), while the appellants were the auction purchasers.

Case Briefs High Courts

No bar in law for a secured creditor to directly proceed u/s 14 of SARFAESI Act after withdrawing measures taken u/s 13(4): Delhi High Court

“The scope of writ jurisdiction cannot be allowed to trounce the statutory obligation, on the stratagem of efficacious alternate remedy.”

Case Briefs High Courts

Banks, Financial Institutions using recovery agents to forcibly seize vehicles over non-payment of loan is illegal: Patna High Court

The right to recovery of the Banks and Financial Institutions if pitted against the constitutional right of life of a person to live with dignity and not to be deprived of without following the established procedure of law, the constitutional rights of the person shall prevail.

Op Eds OP. ED.

NPA Classification ― Whether Opportunity of Prior Hearing Required?

by Prashant Tripathi†

Case Briefs High Courts

Madhya Pradesh High Court directs DRT to register case against Tata Motors Finance Ltd.

Madhya Pradesh High Court held that no document needs to be provided for registering an application under S. 17 of the SARFAESI Act, when the same is not a condition precedent required under the said Section.

Case Briefs High Courts

Non-signatory parties can be subjected to arbitration in accordance with Doctrine of Group of Companies: Delhi High Court

Delhi High Court held that non-signatory or third party could be subjected to arbitration proceedings without their prior consent. It was necessary to examine the touchstone of direct relationship of signatory parties to the arbitration agreement, forming part of a composite transaction.