DEBT RECOVERY LAWS Page 6

[Breaking] SARFEASI Act Applicable To Cooperative Banks : SC Constitution Bench

LIVELAW NEWS NETWORK

The Supreme Court has held that the Securitization and Reconstruction of Financial Assets and Enforcement of Security Act 2002 is applicable to cooperative banks."The cooperative banks under the State legislation and multi State cooperative banks are 'banks' under section 2(1)(c) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002", held the Constitution Bench.The Court rejected the argument that 2013 amendment to...

Scope Of Agricultural Lands As Security Interest Vis-à-Vis SARFAESI Act

Jayesh Dolia,R.V.Prabhat And Ashwin Kumar

Introduction Whilst the RDDBFI Act had been serving as the sole recovery Law for Banks/FI in the country for a decade, as it was not efficient mode of recovery, the Union Legislature deemed it to enact the The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) commencing from 21st June, 2002. The two main salient features of the SARFAESI Act was allowing the creation of Asset Reconstruction Companies to give a chance...

Punjab & Haryana High Court To Hear Cases Through Video Conference Mode With Effect From April 19

Ministry Of Finance Introduces Online Hearing Through Video Conferencing Facility In Five DRTs [Read Notification]

Nitish Kashyap

The Department of Financial Services under the Union Ministry of Finance on Friday with the help of the National Informatics Centre has introduced online hearings via video conferencing in five debt recovery tribunals across the country keeping in mind the objective of social distancing in order to combat the pandemic of Covid-19.Initially, DRT-3 Delhi, DRT-3 Kolkata, DRT Dehradun, DRT-1 Chennai and DRT-3 Mumbai have been identified for providing this facility. The following pre-requisite...

Contracts Of Adhesion : Does The NCLT Have Power To rule Generally On Validity Of The Clauses Of Contracts ?

Rushab Aggarwal L & Tejasvi Chaudhry

The National Company Law Tribunal ('NCLT'), established under the Companies Act, 2013, has emerged as the forum of choice for the purpose of 'recovery' of debt from corporate debtors under the Insolvency and Bankruptcy Code, 2016 ('IBC'), even though it was not established with the intent to enforce and effect recovery of debts. As much as everyone, including the learned members of the NCLT, often insist to the contrary, the stark reality is that the NCLT has become indeed, a forum to...

Delhi HC Allows Interim Reoccupation To Debtor of Property Securitized By Bank, Due To Nationwide Lockdown [Read Order]

Karan Tripathi

Delhi High Court has allowed a family to reoccupy a floor of the property, which was securitised by IIFL Home Finance Limited under Section 14 of SARFAESI Act, due to the extraordinary circumstances caused by nationwide lockdown. While allowing the Petitioner one floor of the property, the Division Bench of Justice Rajiv Sahai Endlaw and Justice Manoj Kumar Ohri has clarified that they will not induct any other person into occupation of the said first floor and will not encroach upon...

Applicability Of SARFAESI Act To Co-operative Societies/Banks: SC Constitution Bench Begins Hearing

MEHAL JAIN

A Five Judge Constitution Bench headed by Justice Arun Mishra has commenced hearing on the question of applicability of The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 on Co-operative Societies/Banks.A three judge bench, referred this matter to constitution bench noticing the conflicting decisions in Greater Bombay Coop. Bank Ltd. vs. United Yarn Tex (P) Ltd. and others [(2007) 6 SCC 236] and the earlier pronouncements of this Court in...