AI Overview...
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Rule 8(2) of the SARFAESI Act - The provision relates to the procedural requirement for filing applications under Section 17 for initiating enforcement actions. The courts have interpreted that compliance with Rule 8(2) is essential to ensure the application is within prescribed time limits and procedural correctness. Failure to adhere to this rule can render proceedings invalid THE AUTHORISED OFFICER vs SMT B S SHEELA - Kerala, Union Bank of India VS Rajendra Wadhwa - Madhya Pradesh.
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Order under Rule 8(1) - Rule 8(1) mandates that a secured creditor must issue a notice to the borrower before initiating proceedings under Section 13(2). Courts have emphasized that issuing a notice under Rule 8(1) is a pre-condition for invoking Section 14, and non-compliance can invalidate subsequent enforcement steps Sasanka Infra projects Private Limited, Hyderabad VS ICICI Bank Limited, Vadodara - Andhra Pradesh, SANJEEV KUMAR PORWAL VS AUTHORIZED OFFICER/CHIEF MANAGER, S. B. I. JALAUN - Allahabad.
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Procedure for Initiating Action - The enforcement process begins with a notice under Rule 8(1). Only after this notice and subsequent compliance can the creditor proceed under Section 13(2) and then invoke Section 14 for possession. The process aims to ensure fairness and due process before enforcing security interests THE AUTHORISED OFFICER vs SMT B S SHEELA - Kerala, Azam Foods Products Pvt. Ltd. VS The Debt Recovery Appellate Tribunal, Ministry of Finance, Government of India, Chenna, Rep. , by its Registrar - Andhra Pradesh.
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Legal Validity and Judicial Interpretation - Courts have upheld the necessity of strict compliance with Rule 8(1) and Rule 8(2). Violations, such as failure to issue proper notices or adhere to procedural timelines, can lead to the quashing of enforcement actions. Some judgments have also highlighted that auction through E-auction is recognized as a valid public auction process, provided procedural norms are followed SANJEEV KUMAR PORWAL VS AUTHORIZED OFFICER/CHIEF MANAGER, S. B. I. JALAUN - Allahabad.
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Limitations and Constitutional Aspects - The enforcement proceedings under SARFAESI are subject to constitutional safeguards, and courts have held that statutory provisions cannot override fundamental rights or constitutional powers. Orders passed under Section 14 are subject to judicial review, especially if procedural requirements are not met Harshad Govardhan Sondagar VS International Assets Reconstruction - Supreme Court.
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Key Insights:
- Compliance with Rule 8(1) and Rule 8(2) is crucial for valid enforcement.
- Notices under Rule 8(1) serve as a prerequisite before invoking Section 14.
- Procedural irregularities can invalidate proceedings, emphasizing the importance of following due process.
- Courts have recognized auction proceedings, including E-auctions, as legitimate if conducted properly.
- Enforcement actions are subject to judicial scrutiny to ensure constitutional rights are protected.
References: - IND_HC_KLHC010205582007 - 00100054598 - 00200048818 - INDGUJ00000061348 - 00200035050 - 02500100709 - 04300002458 - 00300017749 - 02700027933 - 01300018129
Search Results for "Orders on Rule 8 2 of Securitisation Act"
2007 Supreme(Online)(KER) 26680 • India - High Court of Kerala
KR UDAYABHANU, J
Securitisation - Legal Procedure - Securitisation Act - Section 14, 13(2), 17 - The court interpreted the provisions of the Securitisation ... Issues: The core issue was whether a notice under Rule 8(1) should be issued before resorting to Section 14 after a notice ... The revision petitioner in both the matters is the Authorised Officer empowered under the Securitisation Act. ... The only point is to be considered is whether subs....
2014 7 Supreme 601 • India - Supreme Court
A.K.PATNAIK, V.GOPALA GOWDA
Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 – Section 14 – Attaching finality to orders of Chief Metropolitan ... Supreme Court to exercise Constitutional jurisdiction – No statutory provision can take away a power vested by the Constitution – Orders ... (Para 11, 12) ... (b) Securitisation and Reconstruction of Financial ... In case, during the pendency of these appeals, orders have been passed by the Chief Metropolitan Magistrate or the District Magistrate under Section 14 of the ....
2017 0 Supreme(AP) 445 • India - Andhra Pradesh
SANJAY KUMAR, J.UMA DEVI
Rule-8(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, R/w. ... Rule 8(1) of the Security Interest (Enforcement) Rules, 2002, as illegal, arbitrary, unconstitutional violative of principles of ... Enforcement of Security Interest Act, 2002 - Section 13(3)(3A) -To issue a Writ, order or direction more in the nature of Writ of ... Rule-8(1) of the #HL_ST....
• India - High Court of Gujarat
BHARGAV D. KARIA, J
6, 12, 22, 24) ... ... (B) The court found that non-compliance with orders ... (A) Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - SARFAESI Act, 2002 - Compliance with directions of Recovery ... Officer - Court clarifies that the bank cannot initiate recovery proceedings until compliance with the order dated 15-07-2016 for ... Bank under Securitisation Act. ... Further, from the date of orders passed under Section 14 of the SARFAESI #HL_START....
2010 0 Supreme(AP) 431 • India - Andhra Pradesh
NOUSHAD ALI, GODA RAGHURAM
SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002, Sections 13 (2), (4) and (8 ... ) and 31 (j):- The restrictions cited in Section 31 are threshold condition for initiating the proceedings under Section 13(2), but ... The secured creditor thereafter issued a sale notice dated 19.01.2007 [under the provisions of Rule 6(2)/8(6) of the Security Interest (Enforcement) Rules, 2002 (‘the 2002 Rules’)]. ......
2018 0 Supreme(All) 2129 • India - Allahabad
SUNITA AGARWAL
2) and 13 (3-A) – Security Interest (Enforcement) Rules, 2002 – Rule 8(6) – Security interest – Enforcement of – Auction sale – Petitioner ... Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – Sections 13(2), 13(4), 14( ... Section 14 also found proper – Proceedings of sale through E-auction also has been recognized as a public auction – Interference with orders ... With the aforesaid findings, the Securitisation Ap....
2023 0 Supreme(Telangana) 197 • India - Telangana
UJJAL BHUYAN, SUREPALLI NANDA
Act, 2002 - Section 13(2) - Security Interest (Enforcement) Rules, 2002 - Rule 8(1) - Limitation Act, 1963 - Article 137 - Non-performing ... 17 - Companies Act, 2013 - Section 420 - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest ... debtor under Section 13(2) of SARFAESI Act, by possession notice - While proceeding under SARFAESI Act was going on, a proposal ... Thereaft....
2007 0 Supreme(Kar) 596 • India - Karnataka
ASHOK B.HINCHIGERI
Possession notice under Section 13(4) of the Securitisation Act is like an attachment notice, but it does not entile the Bank to ... secured asset is in the possession of abonafide lessee or tenant, he cannot be throuwn out by invoking Sections 13 and 14 of the Securitisation ... Securatisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Sections 13 and 14 - Right ... We would not like to interfere in the orders passed by the DRAT. " ... e) S....
2015 0 Supreme(MP) 102 • India - Madhya Pradesh
RAJENDRA MENON, S.K.GANGELE
Rule 8(2) - Interpretation of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, ... Issues: Interpretation of Rule 8(2) of the Act, compliance with the limitation period for filing the application before the ... Finding of the Court: The court found that the bank's failure to comply with Rule 8(2) of the Act rendered the proceeding....
2010 0 Supreme(Guj) 437 • India - Gujarat
RAJESH H.SHUKLA
The object of the enactment of Securitisation Act is to recovery of the debt, which is one of the object and which may be sought ... or the Registration Act, which can never be the intention of the legislature even while enacting the special statute like Securitisation ... Head Note : ... Securitisation and Reconstruction of Financial Assets ... statute like Securitisation Act or D.R.T. ... He has referred to the statements and objects of the Securitisation#....
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