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...

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...