IONIK METALLICS vs UNION OF INDIA - 2014 Supreme(Guj) 562

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2014 Supreme(Guj) 562

BHASKAR BHATTACHARYA, J.B.PARDIWALA
IONIK METALLICS – Appellant
Versus
UNION OF INDIA – Respondent

Advocates:
Advocate Appeared
MR VISHWAS K SHAH with MR MASOOM K SHAH, MR SACHIN D VASAVADA, MR ISHAR MIHIR PATEL, MR SS PANESAR, MR MAHESH BHAVSAR, MR MP SHAH with MS. KRUTI SHAH, MR SP MAJMUDAR with MR PP MAJMUDAR with MR SHAKTI S JADEJA, MR KANDRAP J TRIVEDI, MR RAVINDRA SHAH with MRS KNAN R SHAH, MR DIGANT B KAKKAD, MR URVEST K GOR for the petitioner
MR S N SOPARKAR, AMAR N BHATT, MR IH SYED, MS NALINI S LODHA, MR ABHIJIT P JOSHI, MR INDRAVADAN PARMAR, MR NITIN K MEHTA, MR BHARAT JANI, MR ABHISHEK M MEHTA, MR RJ TRIVEDI with MR JT TRIVEDI with MS JIGNASA B TRIVEDI, MR DHARMESH V VYAS, MR. LALIT M PATEL, MR PUNIT B JUNEJA, MR K M PARIKH, MR NAGESH SOOD, MR YH MOTIRAMANI with MR BIJU A NAIR, MRS VD NANAVATI, M/S WADIAGHANDY & CO., MR PRANAV G DESAI, MR ANIP GANDHI, MR. YH MOTIRAMANI, MR SH ALMAULA, MR HARDIK S SONI, MR LALIT M PATEL, MR ANIP A GANDHI, MR VIRENDRA M GOHIL, and MS MAUNA BHATT for the Respondents in respective matters.

JUDGMENT

(PER : HONOURABLE THE CHIEF JUSTICE MR. BHASKAR BHATTACHARYA)

1. All these Special Civil Applications were heard analogously as in all these matters, the questions that had arisen for consideration were whether the provisions contained in section 2 (1)(o) of the Securitisation And Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 [hereinafter referred to as the Securitisation Act or SARFAESI Act] and clause 2.1 of the guidelines issued by the Reserve Bank of India known as Prudential Norms on Income Recognition, Asset Classification and Provisioning -pertaining to Advances are ultra vires the Constitution of India, and, consequently, the actions taken by various Banks concerned under the Securitisation Act are illegal and without authority of law.

2. We, however, propose to treat the Special Civil Application No. 14908 of 2012 as the lead matter.

3. The case made out by the petitioners in SCA No. 14908 of 2012 may be summed up thus:

[a]. The petitioners are the borrowers and/or guarantors of Punjab National Bank, which is the respondent No.2 in this writ-petition, whose account with the respondent-Bank had allegedly become Non Performing Asset

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2014 Supreme(Guj) 562

BHASKAR BHATTACHARYA, J.B.PARDIWALAIONIK METALLICS – AppellantVersusUNION OF INDIA – Respondent

Cases Referred (24)

BHASKAR BHATTACHARYA, J.B.PARDIWALA
IONIK METALLICS – Appellant
Versus
UNION OF INDIA – Respondent