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S. G. PANDIT
Bank Of India – Appellant
Versus
Secretary – Respondent
ORDER
1. The Petitioner-Bank is before this Court under Article 226 of the Constitution of India assailing the order bearing No.MAG(2)CR436/2015-16/160651/C4 dated 26.12.2015 passed by the second respondent rejecting the application of the petitioner under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, SARFAESI Act).
2. Heard Shri M.Mohamed Ibrahim, learned counsel for the petitioner and Smt.Rashmi Patel, learned High Court Government Pleader for Respondent Nos.1 and 2.
3. Perused the writ petition papers.
4. Learned counsel for the petitioner would submit that the petitioner sanctioned loan to one M/s. V- Hypermart, a Partnership firm by sanction letter dated 27.11.2012. As the borrower defaulted in repayment, the petitioner initiated recovery action by issuing notice under Section 13(2) of the SARFAESI Act on 08.01.2015. Thereafter, it is submitted that possession notice in respect of the secured assets under Section 13(4) was issued on 18.04.2015. The petitioner filed an application under Section 14 of SARFAESI Act before the first respondent seeking assistance in taking possession of the secured ass
The main legal point established in the judgment is that the SARFAESI Act gives priority to secured creditors over all other debts, and in case of conflict between a Central Act and a State Act, the ....
The main legal point established in the judgment is that the debts due to any secured creditor shall be paid in priority over all other debts as per Section 26-E of the SARFAESI Act, and the secured ....
Point of law: It would be seen that so far as clause (1) of Article 254 is concerned it clearly lays down that where there is a direct collision between a provision of a law made by the State and tha....
The main legal point established in the judgment is that the charge created under the SARFAESI Act takes priority over the State's dues, as per Section 26E of the Act.
Section 26(E) of the SARFAESI Act and Section 31B of Act 51 of 1993, there cannot be any doubt that the rights of a secured creditor to realize the debts due and payable by sale of assets over which ....
The rights of secured creditors take precedence over statutory authorities in recovery proceedings, as established in the provisions of Section 26E of the SARFAESI Act.
The SARFAESI Act takes precedence over the MPID Act for properties mortgaged before MPID attachment, ensuring secured creditors' rights are upheld.
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