Chelameswar, J.—Leave granted in all the SLPs.

2. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (hereinafter referred to as the ‘Act’), was made by the Parliament in the year 2002. The Statement of Objects and Reasons appended to the Act explained the purpose behind the enactment as follows:-

“There is no legal provision for facilitating securitization of financial assets of banks and financial institutions. Further, unlike international banks, the banks and financial institutions in India do not have power to take possession of securities and sell them. Our existing legal framework relating to commercial transactions has not kept pace with the changing commercial practices and financial sector reforms. This has resulted in slow place (sic pace) of recovery of defaulting loans and mounting levels of non-performing assets of banks and financial institutions.”

The enactment was preceded by three Committee Reports – two headed by Mr. M. Narasimham, Ex. Governor, Reserve Bank of India and the third by Mr. T.R. Andhyarujina, Senior Advocate, Supreme Court of India.

3. Recovery of money from a debtor by resorting to the fi