JUDGMENT :

A.K. GOEL, J.

The question referred for consideration of this Bench is whether provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 can be invoked with reference to the loan transaction entered into prior to coming into force of the said Act?

2. A Division Bench of this Court in Subash Chandra Panda v. State of Orissa and others, AIR 2008 Orissa 88 held in the negative while contra view has been taken by Uttaranchal High Court and Allahabad High Court in Unique Engineering Works v. Union of India and others, II (2004) BC 241 (DB) and Pradeep Kumar Gupta and another v. State of U.P. and others, AIR 2010 All. 3 respectively.

3. It may be necessary to advert to some basic facts giving rise to the question. The Orissa Rural Housing Development Corporation Limited (ORHDC) advanced loan to the petitioner-builder against mortgage of property in the year 1998. SARFAESI Act came into force on 17.12.2002 replacing the corresponding provisions of ordinance which came into force from 21.6.2002. The Act inter alia provides for enforcing of Security Interest by a Secured Creditor without the intervention of Court. The term 'Sec