Supreme Court
Lending Public Money Without Efforts To Recover It Is 'Not Acceptable'; SC Issues Notice On Plea Seeking Probe Into JKM Infra
Calling it a "deep-rooted nexus" between banks, Asset Reconstruction Companies (ARCs), and borrowers, the Supreme Court on Friday said it was "not acceptable" for public money to be lent and then not effectively recovered. The remarks came as the Court issued notice on a PIL seeking a court-monitored probe into the settlement of JKM Infra Projects Ltd's ₹1,537 crore debt for ₹73.50 crore through the ARC route. A vacation bench of Chief Justice Surya Kant and Justice V. Mohana heard the matter...
SC Refuses To Interfere With HC Orders Involving Law Firm In Chennai Metro Compensation Contempt Case
Observing that the case involved allegations of a "complete fraud played upon the judicial system," the Supreme Court on Tuesday declined to interfere with Madras High Court orders that brought law firm The Legal Attorneys and Barristers into contempt proceedings stemming from allegations that Samarpana Charitable Trust secured ₹13.18 crore in Chennai Metro Land acqusition compensation after concealing an existing mortgage and ongoing recovery proceedings from the Court.A bench comprising Chief...
SARFAESI Auction Timelines Are Mandatory, Not Directory; Unjustified Deviation Vitiates Sale: Supreme Court
The Supreme Court on Tuesday set aside a SARFAESI auction sale of a mortgaged property after finding that the successful bidder paid the balance sale consideration five days after the deadline fixed for payment and that there was no written agreement extending the time. Holding that the lapse constituted a "material irregularity going to the root of the matter," the court quashed the sale. A bench of Justice Dipankar Datta and Justice Augustine George Masih observed that the auction purchaser...
Supreme Court Says Criminal Prosecution After DRT-Recorded Loan Settlement Was Abuse of Process
The Supreme Court on Friday quashed criminal proceedings against a borrower accused of obtaining enhanced credit facilities using forged audit reports, holding that continuation of the prosecution would amount to an abuse of process after the loan account had been settled under a compromise approved by the bank, implemented by the parties and recorded before the Debts Recovery Tribunal (DRT). A Bench of Justices B.V. Nagarathna and Ujjal Bhuyan passed the judgment while allowing an appeal filed...
Supreme Court Issues Notice On Challenge To HC Order Quashing FIR Against HDFC Bank CEO Sashidhar Jagdishan
The Supreme Court on Friday issued notice in a challenge to the Bombay High Court's May 5, 2026, judgment quashing FIR against HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan. The FIRs stemmed from allegations that Jagdishan colluded with certain former trustees of the Lilavati Kirtilal Mehta Medical Trust and allegedly received illegal payments of about Rs 2 Crore from trust funds. A Bench of Justices M.M. Sundresh and Nongmeikapam Kotiswar Singh remarked that it...
Supreme Court Refers To Larger Bench Whether IBC Moratorium Applies To Entire Cheque Bounce Proceedings Or Only Compensatory Aspect
The Supreme Court on Wednesday referred to a larger bench the question of whether insolvency moratorium protections under the Insolvency and Bankruptcy Code apply to cheque dishonor prosecutions, while expressing the view that the criminal component of such proceedings should not be halted during personal insolvency and bankruptcy proceedings. A bench of Justices J.B. Pardiwala and K.V. Viswanathan observed that the issue requires an “authoritative pronouncement” by a three-judge bench after...
Office-Bearers Can Face NI Act Prosecution If Complaint Shows Their Role In Transaction: Supreme Court
The Supreme Court on Tuesday held that criminal liability for cheque dishonour cannot be fastened on a person merely because they hold an office in a society, while making it clear that proceedings cannot be quashed at the threshold where the complaint discloses sufficient factual material linking them to the underlying transaction. A Bench of Justice Prashant Kumar Mishra and Justice N.V. Anjaria partly allowed an appeal filed by Mansi Finance (Chennai) Ltd against a Madras High Court order...
Supreme Court Orders No Coercive Steps In Plea Seeking Bar On NI Act Proceedings During Personal Insolvency
Another plea has been filed in the Supreme Court seeking a declaration that proceedings under the Negotiable Instruments Act and the Payment and Settlement Systems Act cannot continue against personal guarantors once the interim moratorium under the Insolvency and Bankruptcy Code is triggered.The plea has been filed by Karan Bhatia, suspended director of Uttam Cylinders Pvt Ltd and a personal guarantor for the company's loans. A Bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and...
Banks 'Casual' In Granting Big Loans, Small Borrowers Face 'Borderline Harassment': Supreme Court
The Supreme Court on Tuesday criticised banks for what it described as a casual approach in sanctioning large loans to bigger entities while subjecting ordinary borrowers seeking small personal loans to stringent conditions and tedious procedures that may, in some cases, amount to “borderline harassment." A Bench of Justices Ahsanuddin Amanullah and R. Mahadevan clarified that it was not advocating any easing of lending norms, saying those matters were best left to the Reserve Bank of India and...
Auction Purchaser Rights Not Absolute Under SARFAESI; Must Yield Where Sale Is Illegal: Supreme Court
The Supreme Court on Wednesday (April 1) held that the rights of a bona fide auction purchaser are not absolute and must yield where the sale process is legally flawed, as it dismissed appeals filed by auction purchasers and the Central Bank of India and upheld a Madras High Court judgment setting aside a SARFAESI auction sale.A bench of Justices Dipankar Datta and Satish Chandra Sharma affirmed the High Court's April 12, 2023 ruling, which had annulled the auction after finding that the...
Delay In Taking Possession Of Secured Asset Not Ground To Close Section 14 SARFAESI Proceedings: Supreme Court
The Supreme Court on Tuesday held that a Chief Judicial Magistrate (CJM) is under a statutory obligation to ensure execution of a warrant of possession under Section 14 of the SARFAESI Act and cannot close proceedings merely because possession could not be taken within the prescribed time limit. The top court cautioned that the secured creditor cannot be made to run from pillar to post for recovery.A bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe was hearing an appeal filed by...
High Courts Can Examine Valuation, Reserve Price In Recovery Proceedings Under Supervisory Jurisdiction: Supreme Court
The Supreme Court on Friday observed that high courts may invoke their supervisory jurisdiction to examine valuation and reserve price fixation in recovery proceedings where credible issues are raised regarding the adequacy of valuation or the fairness of the process. A bench of Justices J.B. Pardiwala and R. Mahadevan made the observation while dismissing an appeal filed by an auction purchaser challenging a Madras High Court judgment dated February 6, 2020, which had remitted the matter to...