SARFAESI: Only Expressly Created Statutory First Charges Under Central/State Laws Can Take Precedence Over Secured Creditors' Claim: SC [Read Judgment]

"It is not enough to merely provide for recovery of dues as arrears of land revenue."

Banks Cannot Recover From Customers The Amount Lost By Them Through Online Fraud : Kerala HC [Read Judgment]

The Court said that money lost by loan account holders through online fraud cannot be recovered by invoking powers under SARFAESI Act.

Breaking : Chief Judicial Magistrates Competent To Entertain Applications U/s 14 SARFAESI Act: SC [Read Judgment]

Section 14 , stricto sensu, cannot be construed as being inconsistent with the provisions of the Code of Criminal Procedure or vice­versa.

Karnataka HC Dismisses Vijaya Mallya's Review Petition Against Order Directing Deposit Of Rs 3101 Crores [Read Order]

Karnataka High Court has rejected a review petition filed by fugitive economic offender Vijay Mallya, challenging a coordinate bench order which in turn had upheld the order by Debt Recovery Appellate Tribunal (DRAT), asking Mallya to deposit a sum of Rs.3101 Crore, as a precondition for hearing his appeal against a Debt Recovery Tribunal (DRT) order. On January 19, 2018, the DRT had ordered the attachment of shares worth an estimated Rs 385.9 million in United Breweries, a company that Mallya...

Protection From SARFAESI Act Not Available To 'Tenant-In-Sufferance' : SC Clarifies Interplay Between SARFAESI And Tenancy Laws [Read Judgment]

"If any of the tenants claim that he is entitled to possession of a secured asset for a term of more than a year, it has to be supported by the execution of a registered instrument", Court held.

DRTs Not Barred From Deciding Jurisdictional Issues As 'Preliminary Issues', Says Gujarat HC [Read Judgment]

" However, such power should be exercised sparingly, only in cases where the question of the jurisdiction of the Debts Recovery Tribunal to decide the case is involved"

Corruption Is A Disease; Bombay HC Directs Registration Of FIR Against Ajit Pawar And Other Politicians In Co-operative Bank Scam [Read Judgment]

The Bombay High Court on Thursday directed the Economic Offences Wing to register a FIR against former Deputy Chief Minister of Maharashtra Ajit Pawar and other state politicians for their alleged involvement in the State Co-operative bank scam within 5 days. Division bench of Justice SC Dharmadhikari and Justice SK Shinde were hearing a PIL filed by one Surinder Mohan Arora alleging rampant corruption in the Co-operative bank sector, wherein public exchequers' money was looted by committing...

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...