MAIN POINTS
Inclusion of a State Act in Ninth Schedule by itself, would not confer immunity to the Act from being overridden by the provisions of a Parliamentary statute.
In case of repugnancy between a Central and a State Act on any field of entry mentioned in List III of the Seventh Schedule (Concurrent List), Central law will prevail in terms of Article 254(1) subject to provisions of Article 254(2).
In the field of banking dealing with sale of secured assets, Central Act being dominant legislation will prevail over the State Act not dealing with banking.

JUDGMENT

Ranjan Gogoi, J.

Leave granted.

2. The writ petition out of which these appeals have arisen was instituted before the Agartala Bench of the Gauhati High Court. The writ petitioners, who are the respondents herein, are members of Scheduled Tribes of the State of Tripura. They had contended that the Sale Notification dated 26.06.2012 issued by the appellant Bank under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the “Act of 2002”) was in infraction of Section 187 of the Tripura Land Revenue and Land Reforms Act, 1960 (hereinafter referred to as the “Tripura Act of 1960”) as under the Tripura Act there is a legislative embargo on the sale of mortgaged properties by the bank to any person who is not a member of a scheduled tribe. The auction purchasers in the present case happened to be the persons who are not members of any scheduled tribe.

3. The High Court by the impugned order answered the writ petition in favour of the respondents/writ petitioners on the ground that the Tripura Act of 1960 being included in the Ninth Schedule to the Constitution and, therefore, enjoying the protection of Article 31-B of the Constitution, would prevail over the Act of 2002 so as to invalidate the sale Notification dated 26.06.2012, the same being contrary to the provisions of Section 187 of the Tripura Act of 1960.

4. It will not require much appreciation or scrutiny to come to the conclusion that the High Court was wholly incorrect in answering the writ petition and striking down the sale Notification dated 26.06.2012 on the above basis. Article 31-B of the Constitution, on the very face of the language contained therein, is self explanatory and provides protection/immunity to a legislation from challenge on the ground that it violates any of the provisions of Part III of the Constitution. Inclusion of the Tripura Act of 1960 in the Ninth Schedule by itself, would, therefore, not confer immunity to the said legislation from being overridden by the provisions of a Parliamentary statute. This is a question, therefore, that this Court will have to deal with notwithstanding the fact that the proceedings before the High Court did not proceed on the aforesaid basis. We had, therefore, permitted the learned counsels of both sides to address us on the core question arising in the present appeals, namely, whether the Act of 2002 insofar as it provides for sale of immovable properties offered as security for a loan advanced, without any restriction as to the class or category of buyers, would prevail notwithstanding the restrictive provision in this regard under Section 187 of the Tripura Act of 1960.

5. Shri Mukul Rohatgi, the learned Attorney General for India appearing on behalf of the appellant-Bank and Shri V. Giri, learned senior counsel representing the auction-purchasers in the connected appeal have contended that the purpose and object of the Act of 2002 is to regulate securitisation and reconstruction of financial assets and enforcement of security interest and for matters connected therewith. On the other hand, the purpose of the Tripura Act of 1960 is to consolidate the law relating to land revenue and to provide for the acquisition of estates and for certain other measures of land reform. While the Act of 2002 enacted by the Union Parliament is referable to Entry 45 of List I, the Tripura Act can be traced to Entries 18 and 45 of the State List. Section 187 of the Tripura Act puts an embargo on the sale of hypothecated/ mortgaged properties by a bank to any person who is not a tribal. Therefore, the provisions of the Tripura Act of 1960 deal with a crucial aspect of the subject of banking. Reference in this regard is made to the provision of Section 13 of the Act of 2002 which permits the secured creditor to enforce the security interest without the intervention of the Court. The sale of the property of any person, offered to a bank