Partial deposit before DRAT under Section 18 of SARFAESI Act refundable, reiterates SC [Read Judgment]

Reiterating the dictum laid down in in Axis bank vs. SBS Organics Private Limited, the Supreme Court in KUMAR ALUMINIUM LTD. VS. ASSET RECONSTRUCTION COMPANY INDIA has set aside a Delhi High Court Judgment which had refused to interfere with DRAT order which turned down the prayer for refund of the amount deposited in compliance of the requirement of the second proviso to section 18(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002,...

Partial Deposit before DRAT is neither a secured asset, nor a secured debt; It is refundable to the appellant after disposal of Appeal: SC [Read Judgment]

The Supreme Court in Axis bank vs. SBS Organics Private Limited has held that the partial deposit before the Debt Recovery Appellate Tribunal (DRAT) as a pre-condition for considering the appeal on merits in terms of Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), is neither a secured asset, nor a secured debt, and hence refundable to the appellant on disposal of appeal.Apex Court Bench comprising of Justices...

Provisions of SICA prevail over the provision for recovery of debts under RDDB Act : Supreme Court [Read the Judgment]

A three judge benchof the Supreme Court, consisting of Chief Justice of India HL Dattu, Justice Bobde and Justice Sapre pronounced that "the provisions of SICA, in particular Section 22, shall prevail over the provision for the recovery of debts in the RDDB Act."The appeal had first come up before the Bench of Justice Thakker and Justice Altamas Kabir, who had a difference of opinion regarding interpretation of Section 34 of the...

SARFAESI Amendment 2004 Unconstitutional: Gujarat HC

The Gujarat High Court delivered an important judgment, wherein it held unconstitutional an amendment in securitization laws and restored the Reserve Bank of India (RBI) as the watchdog of banks and non-banking financial institutes across the country as far as their non-performing assets (NPA) period was concerned. A division bench of Chief Justice Bhaskar Bhattachrya and Justice J B Pardiwala has ruled that a 2004 amendment in the Securitization and Reconstruction of Financial Assets and...