S.H. Kapadia, J.

1. By this writ petition, petitioner seeks to challenge the constitutional validity of The Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [hereinafter referred to for the sake of brevity as Non-performing Asset (NPA) Act, 2002]

Background facts :

2. Extraordinary and urgent situations demand extraordinary remedial measures particularly in economics and finance. With globalization, India has become a signatory to various International Conventions, which require India to reduce its gross fiscal deficit, which was 10% of G.D.P. around 21st June, 2002. Banking is one of an important economic organ to revitalize the economy. However, on 21st June, 2002 the non-performing assets of Banks had reached a figure of Rs. 90,000 crores (approximately) and, therefore, the Government came out with an Ordinance known as Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002 which has been substituted by the Act on 19th July, 2002 with effect from 21st June, 2002. That Act briefly is called as Non-performing Asset Act, 2002 (hereinafter referred to as NPA Act, 2002). In the Ba