Civil Courts Can't Grant Interim Relief Against SARFAESI Proceedings Despite Suit Being Maintainable: Kerala High Court

The Kerala High Court has held that civil courts cannot grant interim injunctions to halt proceedings under the SARFAESI Act even where the underlying civil suit is maintainable. The ruling applies where the relief sought falls outside the jurisdiction of the Debt Recovery Tribunal. Justice S. Manu delivered the ruling while dismissing an appeal filed by Deepa George against an order of the III Additional Sub Court, Ernakulam refusing interim relief against Federal Bank. The court observed that...

Sec.138 NI Act Not Maintainable On Cheque Issued After Company's Dissolution: Karnataka High Court

The Karnataka High Court on 1 July held that proceedings under Section 138 of the Negotiable Instruments Act, 1881 are not maintainable where a cheque is issued in the name of a company that had already been struck off and dissolved. A Bench of Justice M Nagaprasanna allowed the petition and quashed the complaint proceedings initiated against Giga Networks Private Limited and its former director. He observed: “On a blend of the judgments rendered by the Apex Court and that of the High Court of...

SARFAESI Security Interest Cannot Override Statutory First Charge Under AP Tax Laws: Karnataka High Court

The court also urged the legislature to clearly specify whether legislative amendments are prospective, retrospective, or retroactive to reduce interpretational disputes while dealing with amendments to the SARFAESI Act.

EPF Dues Get Priority Over Establishment Assets, Not Partner's Personal Property: Karnataka High Court

The Karnataka High Court has recently held that while the statutory first charge under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 takes priority over competing claims against the assets of an establishment, it does not automatically extend to the separate property of a partner of a partnership firm. Justice Anant Ramanath Hegde said Section 11(2) of the EPF Act expressly creates a first charge only over the assets of the establishment and not over the separate assets...

Settlement Preserving S.138 Proceedings Keeps Cheque Dishonour Liability Alive: Delhi High Court

On 1 July, the Delhi High Court held that assignment of debt to a sister concern under a settlement agreement does not extinguish liability under the Negotiable Instruments Act where the settlement expressly preserves cheque dishonour proceedings, and interpretation of such settlement terms involves disputed questions of fact unsuitable for adjudication in proceedings under Section 482 CrPC. Justice Amit Mahajan dismissed petitions filed by Flywheel Logistics Pvt. Ltd. and its directors, Anil...

SARFAESI Auction Purchasers Cannot Be Thrown On Streets On Account Of Dispute Between Banks: Bombay High Court

Successful auction purchasers holding a registered sale certificate under the SARFAESI Act cannot be thrown on the streets because of an inter se dispute between two secured creditors, the Bombay High Court held on Tuesday. "The petitioners, who are successful auction purchasers having registered sale certificate in respect of the said flat in their favour and who have been in valid and legal possession of the aforesaid flat for more than eight years, cannot be thrown on the streets, on the...

Burden Shifts To Complainant Once Accused Proves Discharge In Cheque Bounce Case: Kerala High Court

The Kerala High Court on 30 June held that in a prosecution under Section 138 of the Negotiable Instruments Act, once the accused proves discharge of the underlying debt, and the complainant asserts that such repayments relate to a different transaction, the burden shifts to the complainant to establish that assertion. Justice A. Badharudeen dismissed an appeal filed by the complainant and upheld the acquittal of the accused passed by the Trial Court. He held: “Once plea of discharge is proved...

Kerala High Court Sets Aside KFC Auction Sale, Says Purchaser Cannot Be Financed Against Same Property

The Kerala High Court on 29 June held that the Kerala Financial Corporation (KFC) cannot finance the purchase of an auctioned property by advancing a loan against the security of the very same property, as such a course violates its statutory duty to secure the best possible price for the mortgaged asset. A Division Bench of Justices A.K. Jayasankaran Nambiar and Preeta A.K. set aside the auction sale conducted by KFC after finding material irregularities in the sale process, and directed it to...

Kerala High Court Dismisses Cholamandalam Appeal, Reiterates Threshold For Intra-Court Appeals

The Kerala High Court on 19 June dismissed a writ appeal filed by Cholamandalam Investment and Finance Company Limited after holding that a purely procedural interim order, which does not affect substantive rights or cause serious prejudice, cannot be appealed under Section 5(i) of the Kerala High Court Act, 1958. A Division Bench of Justices Anil K Narendran and Muralee Krishna S ruled that an intra-court appeal lies only against orders that substantially affect the rights or liabilities of...

NCLAT Appeal Not A Bar On Swiss Challenge Auction By Bank: Madras High Court

The Madras High Court on 22 June held that the pendency of an appeal before the NCLAT does not, by itself, bar a bank from proceeding with the transfer of loan exposure or auction of secured assets through the Swiss Challenge Method, reiterating that courts will not ordinarily interfere in commercial banking decisions unless they are shown to be arbitrary or illegal. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed a plea challenging...

Karnataka High Court Upholds Special Court Attachment Under KPIDFE Act, Rejects Canara Bank Challenge

The Karnataka High Court on 10 June 2026 dismissed an appeal filed by Canara Bank against a Special Court order that had made absolute an interim attachment under the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (KPIDFE Act). A Division Bench of Justices Anu Sivaramman and Venkatesh Naik T dismissed the appeal filed by Canara Bank and upheld the Special Court's order. It held that a secured creditor who has constructive notice of an attachment cannot...

Kerala High Court Sets Aside One-Line Dismissal Of Cheque Dishonour Appeal, Calls It 'Shocking'

On 17 June, the Kerala High Court set aside an appellate court order that had dismissed a cheque dishonour appeal for default, holding that courts cannot dispose of criminal appeals against conviction mechanically merely because the appellant or counsel remains absent. Justice A. Badharudeen held that an appellate court must independently re-appreciate the evidence and pass a reasoned judgment while deciding an appeal against conviction and sentence. He held: “…a judgment in a criminal case,...