SARFAESI Act; The lawful possession of the secured asset with the lessee under a valid lease and the secured creditor cannot take over possession until the lawful possession of the lessee gets...
10 years, 11 months ago

SARFAESI Act; The lawful possession of the secured asset with the lessee under a valid lease and the secured creditor cannot take over possession until the lawful possession of the lessee gets...

Live Law  

Supreme Court on Thursday ordered the Chief Metropolitan Magistrate/District Magistrate of Mumbai to hear and pass fresh orders in a lease dispute over mortgaged property in Harshad Govardhan Sondagar Vs International Assets Reconstruction Co ltd.Bench comprising of Justice A. K. Patnaik and Justice V. Gopala Gowda was considering an appeal by a group of tenants who are under threat of. Supreme Court on Thursday ordered the Chief Metropolitan Magistrate/District Magistrate of Mumbai to hear and pass fresh orders in a lease dispute over mortgaged property in Harshad Govardhan Sondagar Vs International Assets Reconstruction Co ltd. Regarding the effect of provisions of Securitization and Reconstruction of Financial Assets and Enforcements of Security Interests Act, 2002 act in the right of lessee to remain in the possession of the property during the period of lease Court has observed as follows; "One of the measures mentioned in clause in sub-section of Section 13 of the SARFAESI Act is to take possession of the secured assets of the borrower including the right to transfer by way of lease. Court has set aside the order of Chief Metropolitan Magistrate, Mumbai, under Section 14 of the SARFAESI Act for delivery of possession of the secured asset to the respective secured creditors.

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History of this topic

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court
Trending News
2 months, 3 weeks ago

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court

Live Law  

The Supreme Court has stated that the right of a borrower to redeem the secured asset can be exercised only till a notice for the sale of the mortgaged property is published in terms of Rule 9 of the Security Interest Rules, 2002. The Court observed that till the 2016 amendment to the Securitisation and Reconstruction of Financial Assets and …

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court
Trending News
2 months, 3 weeks ago

SARFAESI | Borrower's Right Of Redemption Available Only Till Notice For Sale Of Mortgaged Asset Is Published : Supreme Court

Live Law  

The Supreme Court has stated that the right of a borrower to redeem the secured asset can be exercised only till a notice for the sale of the mortgaged property is published in terms of Rule 9 of the Security Interest Rules, 2002. The Court observed that till the 2016 amendment to the Securitisation and Reconstruction of Financial Assets and …

Property Of Personal Guarantors Cannot Be Sold Under SARFAESI Act During Moratorium Period U/S 96 Of IBC: NCLT Mumbai
4 months, 1 week ago

Property Of Personal Guarantors Cannot Be Sold Under SARFAESI Act During Moratorium Period U/S 96 Of IBC: NCLT Mumbai

Live Law  

The NCLT Mumbai bench of Mr. Charanjeet Singh Gulati and Justice Lakshmi Gurung has held that once a petition under section 95 of the IBC is filed, the interim moratorium under section 96 is triggered. Brief Facts This application has been filed by, Raghavendra Joshi under Section 60 r/w Section 60 of the Insolvency and Bankruptcy Code, 2016 read with …

S. 14 SARFAESI Act | DM/CJM Obligated To Take Possession Of Secured Asset, Forward It To Secured Creditor: Allahabad HC
4 months, 1 week ago

S. 14 SARFAESI Act | DM/CJM Obligated To Take Possession Of Secured Asset, Forward It To Secured Creditor: Allahabad HC

Live Law  

The Allahabad High Court has observed that as per the mandate of Section 14 of the SARFAESI Act, 2002, it is the statutory obligation of the District Magistrate or the Chief Judicial Magistrate concerned to take possession of secured assets and documents and to forward such assets & documents to the secured creditor.A bench of Justice Rajan Roy and Justice …

[SARFAESI Act] Nature Of Secured Asset Continues To Remain Same Even After Being Purchased By Secured Creditor: Kerala High Court
8 months, 3 weeks ago

[SARFAESI Act] Nature Of Secured Asset Continues To Remain Same Even After Being Purchased By Secured Creditor: Kerala High Court

Live Law  

The Kerala High Court held that a 'secured asset' continues its nature of 'secured asset' even after it is bought by the secured creditor. High Court held that this would mean that the character of the property as a 'secured asset' will continue for the purpose of the SARFAESI Act. The High Court referred to ITC Limited v Blue Coast …

[S.14 SARFAESI Act] District Magistrates Can't Adjudicate On Application For Taking Possession Of Secured Assets, Constantly Breaching Law: Punjab & Haryana HC
11 months ago

[S.14 SARFAESI Act] District Magistrates Can't Adjudicate On Application For Taking Possession Of Secured Assets, Constantly Breaching Law: Punjab & Haryana HC

Live Law  

The Punjab & Haryana High Court has made it clear that the District Magistrate under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is only an executing functionary and not empowered to make any adjudication on the application made by the creditors for taking possession of the secured assets.Observing. The Punjab …

SARFAESI Act | Right Of Redemption Cannot Be Taken Away By Insufficient Notice: Allahabad High Court
1 year, 2 months ago

SARFAESI Act | Right Of Redemption Cannot Be Taken Away By Insufficient Notice: Allahabad High Court

Live Law  

The Allahabad High Court has held that right of redemption under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is an important right which cannot be taken away or breached by the authorities by insufficient notice. While observing that it is settled law that service of notice upon the borrower is mandatory under Rule …

SARFAESI Act | MP High Court Issues Guidelines To Magistrates For Expeditious Disposal Of S.14 Applications Moved By Secured Creditors
1 year, 4 months ago

SARFAESI Act | MP High Court Issues Guidelines To Magistrates For Expeditious Disposal Of S.14 Applications Moved By Secured Creditors

Live Law  

Madhya Pradesh High Court has recently taken serious note of the inaction by Chief Judicial Magistrates on applications under Section 14 of the SARFAESI Act. While allowing the application filed by the secured creditor, the court also underscored that there are only two aspects that a Chief Judicial Magistrate must consider before passing an order u/S 14 of the SARFAESI …

SARFAESI Act | As per Unamended S.13(8), Borrower Has Right To Redeem Available Till Sale Certificate Is Registered & Possession Is Handed Over : Supreme Court
1 year, 5 months ago

SARFAESI Act | As per Unamended S.13(8), Borrower Has Right To Redeem Available Till Sale Certificate Is Registered & Possession Is Handed Over : Supreme Court

Live Law  

The Supreme Court, while deciding an appeal, settled the issue of right of redemption of a mortgaged property by a borrower under the unamended Section 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002. The Bench comprising of Justices Vikram Nath and Rajesh Bindal clearly held that as per the unamended Section 13 …

SARFAESI Act No License For Bank Officers To Act Against Law : Supreme Court
1 year, 6 months ago

SARFAESI Act No License For Bank Officers To Act Against Law : Supreme Court

Live Law  

In a recent judgement, the Supreme Court underlined that all litigants, including banks, were duty bound to follow provisions of law and that banks would not be treated on a different footing than other litigants. The Court said that the the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 does not give any "license to …

Borrowers Should Avail Statutory Remedies Under SARFAESI Act Before Invoking Article 226 Against Recovery Proceedings: Delhi High Court
1 year, 7 months ago

Borrowers Should Avail Statutory Remedies Under SARFAESI Act Before Invoking Article 226 Against Recovery Proceedings: Delhi High Court

Live Law  

The Delhi High Court recently observed that the SARFAESI Act provides statutory remedies for borrowers, including the right to appeal, and that the court should not interfere in recovery proceedings unless there is a clear violation of law. Justice Purushaindra Kumar Kaurav reiterated that the borrower will have to wait till measures under Section 13 of the SARFAESI Act for …

S.34 SARFAESI Act Bars Grant Of Injunction By Civil Court For Actions Taken Under The Act: Jammu & Kashmir High Court
1 year, 8 months ago

S.34 SARFAESI Act Bars Grant Of Injunction By Civil Court For Actions Taken Under The Act: Jammu & Kashmir High Court

Live Law  

The Jammu and Kashmir High Court has ruled that no injunction shall be granted by any court in respect of any action taken or to be taken in pursuance of any power conferred under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The case before the court involved a plaintiff who had filed a …

Priority Of The Secured Creditor Over Govt. Dues Under SARFAESI Act, 2002: Bombay High Court
1 year, 8 months ago

Priority Of The Secured Creditor Over Govt. Dues Under SARFAESI Act, 2002: Bombay High Court

Live Law  

The Bombay High Court held that priority belongs to the secured creditor in respect of the dues of the Central government, state government, or local authority under Section 26-E of the SARFAESI Act, 2002.The bench of Justice B. P. Colabawalla and Justice M.M. The Bombay High Court held that priority belongs to the secured creditor in respect of the dues …

Arbitrator Has No Jurisdiction To Set Aside Sale Notice Issued By Secured Creditor Under Section 13(4) Of SARFAESI Act: Delhi High Court
2 years, 1 month ago

Arbitrator Has No Jurisdiction To Set Aside Sale Notice Issued By Secured Creditor Under Section 13(4) Of SARFAESI Act: Delhi High Court

Live Law  

The Delhi High Court has ruled that the Arbitrator has no jurisdiction to set aside the sale notice issued by the secured creditor under Section 13 of the SARFAESI Act, 2002, seeking to enforce its “security interest”. Since a specific right is vested in a “secured creditor” to enforce a “security interest”, by issuance of a sale notice under Section …

'Not Manifestly Arbitrary': Delhi High Court Upholds Constitutional Validity Of Chapter II Of SARFAESI Act
2 years, 5 months ago

'Not Manifestly Arbitrary': Delhi High Court Upholds Constitutional Validity Of Chapter II Of SARFAESI Act

Live Law  

The Delhi High Court has upheld the constitutional validity of Chapter II of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 observing that it is not manifestly arbitrary and is not in violation of Article 14 of the Constitution of India.A division bench of Chief Justice Satish Chandra Sharma and Justice Subramoniuam Prasad passed. …

Section 14 SARFAESI Act - CMM/DM Not Required To Adjudicate Disputes Between Borrower/ Third Party And Secured Creditor: Supreme Court
2 years, 6 months ago

Section 14 SARFAESI Act - CMM/DM Not Required To Adjudicate Disputes Between Borrower/ Third Party And Secured Creditor: Supreme Court

Live Law  

The Supreme Court observed that, while considering an application under Section 14 SARFAESI Act, the CMM/DM is not required to adjudicate the dispute between the borrower and the secured creditor and/or between any other third party and the secured creditor with respect to the secured assets.Once all the requirements under Section 14 of the SARFAESI Act are complied. The Supreme …

[S.14 SARFAESI Act] Jurisdiction Of DM Purely Ministerial In Nature; Not Empowered To Hear Borrower/ Third Parties: Bombay High Court
2 years, 7 months ago

[S.14 SARFAESI Act] Jurisdiction Of DM Purely Ministerial In Nature; Not Empowered To Hear Borrower/ Third Parties: Bombay High Court

Live Law  

Observing that the jurisdiction of the District Magistrate is limited only to assisting secured creditors in taking possession of secured assets under the SARFAESI Act, the Bombay High Court held that the DM isn't empowered to hear the borrower or third parties while deciding application filed by secured creditor. "The jurisdiction of the CMM/DM under Section 14 of the SARFAESI …

Claim Of Secured Creditor Under SARFAESI Act Not Affected By Attachment Under Karnataka Protection Of Deposits Act: High Court
2 years, 8 months ago

Claim Of Secured Creditor Under SARFAESI Act Not Affected By Attachment Under Karnataka Protection Of Deposits Act: High Court

Live Law  

The Karnataka High Court has held that the attachment of a secured asset under the Karnataka Protection of Interest of Deposit in Financial Establishment Act, 2004, would have no priority over the claim of the Bank, to recover dues made under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. A single judge bench of …

'Bank Has Symbolic Possession Of Mortgaged Properties': Gujarat High Court Refuses To Cancel 2016 Bail Order For Non-Repayment 10 Cr Loan
2 years, 8 months ago

'Bank Has Symbolic Possession Of Mortgaged Properties': Gujarat High Court Refuses To Cancel 2016 Bail Order For Non-Repayment 10 Cr Loan

Live Law  

The Gujarat High Court has recently declined to cancel the bail of the Respondent-Accused for offences under Sections 406 and 420 added with Sections 467, 468 and 471 of the IPC on the ground that the Applicant-Bank had already taken 'symbolic possession' of certain properties long back. The High Court, therefore, felt that it should not interfere with the order …

Petitioner Cannot File Writ Petition Before Exercising Remedy U/S 17 Of SARFAESI Act; Madras High Court
3 years, 2 months ago

Petitioner Cannot File Writ Petition Before Exercising Remedy U/S 17 Of SARFAESI Act; Madras High Court

Live Law  

The Madras High Court, in a Bench comprising of Justice M. Duraiswamy and Justice Sathya Narayan Prasad in R. Ganesan v. M/s. ASREC Limited has reiterated the legal position and dismissed the writ petition filed by the Petitioner due to non-exercise of alternate remedy of appeal under Section 17 of the SARFAESI Act. The Petitioner filed a writ petition under …

SARFAESI Proceedings Not Invalidated On Mere Failure Of Bank In Giving Reply To Objections If Borrower's Proposals Were Otherwise Considered : Supreme Court
3 years, 3 months ago

SARFAESI Proceedings Not Invalidated On Mere Failure Of Bank In Giving Reply To Objections If Borrower's Proposals Were Otherwise Considered : Supreme Court

Live Law  

The Supreme Court held that failure to furnish reply by the creditor as per the mandate of Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 would not entitle the debtor of discretionary relief, if the Court is satisfied that the creditor has considered the debtor's representation and granted it sufficient opportunity …

[SARFAESI] Time Limit Stipulation For District Magistrates To Deliver Possession Of Secured Asset Is Not Mandatory: Supreme Court [Read Judgment]
4 years, 4 months ago

[SARFAESI] Time Limit Stipulation For District Magistrates To Deliver Possession Of Secured Asset Is Not Mandatory: Supreme Court [Read Judgment]

Live Law  

The Supreme Court has held that time limit stipulation in Section 14 of the SARFAESI Act mandating the District Magistrate to deliver possession of a secured asset, is directory and not mandatory and that the inability to take possession within time limit does not render the District Magistrate Functus Officio.The bench comprising Justices L. Nageswara Rao, Hemant Gupta and Ajay …

Trivial Procedural Lapses Not A Ground To Nullify SARFAESI Proceedings Initiated By Secured Creditor If No Substantial Prejudice Was Caused To Borrower: SC [Read Judgment]
4 years, 5 months ago

Trivial Procedural Lapses Not A Ground To Nullify SARFAESI Proceedings Initiated By Secured Creditor If No Substantial Prejudice Was Caused To Borrower: SC [Read Judgment]

Live Law  

The Supreme Court has observed that proceedings initiated under the SARFAESI Act by the Secured Creditors cannot be nullified merely on the ground of technical defects and procedural lapses unless substantial prejudice was caused to the defaulter. In this case, the Debt Recovery Tribunal quashed the demand notice served on the borrower under Section 13 of the Securitisation and Reconstruction …

Breaking : Chief Judicial Magistrates Competent To Entertain Applications U/s 14 SARFAESI Act: SC [Read Judgment]
5 years, 6 months ago

Breaking : Chief Judicial Magistrates Competent To Entertain Applications U/s 14 SARFAESI Act: SC [Read Judgment]

Live Law  

In an important judgment, the Supreme Court has held that a Chief Judicial Magistrate is equally competent to deal with the application moved by the secured creditor under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.In this case viz. In an important judgment, the Supreme Court has held that a Chief Judicial …

Attempt To Take Possession Of Property Which Isn’t Secured Asset Can Be Called In Question In Civil Court: Kerala HC [Read Order]
6 years, 3 months ago

Attempt To Take Possession Of Property Which Isn’t Secured Asset Can Be Called In Question In Civil Court: Kerala HC [Read Order]

Live Law  

‘Attempting to take possession of a property which is not a secured asset under the guise of the SARFAESI Act is certainly a fraudulent action which can be called in question in a civil court.’The High Court of Kerala has held that jurisdiction of the civil court is not barred if the plea is that the plaint schedule property is …

SARFAESI: Borrower/Debtor Can File Securitisation Application At The Stage Of The Possession Notice, Holds SC
6 years, 4 months ago

SARFAESI: Borrower/Debtor Can File Securitisation Application At The Stage Of The Possession Notice, Holds SC

Live Law  

‘The object of providing a remedy against the wrongful action of a secured creditor to a borrower will be stultified if the borrower has to wait until a sale notice is issued, or worse still, until a sale actually takes place.’Setting aside a judgment of Allahabad High Court full bench, the Supreme Court on Thursday held that the borrower/debtor can …

Secured Creditor Should Mandatorily Consider Debtor's Representation Under S.13 (3A) Of SARFAESI Act: SC [Read Judgment]
7 years ago

Secured Creditor Should Mandatorily Consider Debtor's Representation Under S.13 (3A) Of SARFAESI Act: SC [Read Judgment]

Live Law  

The Supreme Court held that Section 13 of the SARFAESI Act is mandatory The Supreme Court, on Monday, held that while recovering secured property from Non-Performing Assets, a secured creditor should mandatorily consider the debtor's representation under Section 13, after the initiation of proceedings under Section 13 of the Securitization and Reconstruction of Financial. The Supreme Court, on Monday, held …

When Lender Merges With ‘Financial Institution’, Successor-In-Interest Entitled To Recovery Under SARFAESI Act, Rules SC [Read Judgment]
7 years ago

When Lender Merges With ‘Financial Institution’, Successor-In-Interest Entitled To Recovery Under SARFAESI Act, Rules SC [Read Judgment]

Live Law  

The Supreme Court bench of Justice A. K. Sikri and Justice Ashok Bhushan has recently held that where an entity granting a loan is not a ‘banking company’ or a ‘financial institution’ under clauses and, respectively, of Section 2 of the SARFAESI Act of 2002, but subsequently merges with a ‘financial institution’, the successor-in-interest shall be deemed to be a. …

SARFAESI Act cannot be enforced in Jammu and Kashmir, rules the J&K High Court
9 years, 8 months ago

SARFAESI Act cannot be enforced in Jammu and Kashmir, rules the J&K High Court

Live Law  

In a landmark judgment, the Jammu & Kashmir High Court has held recently that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, enacted by Parliament in 2002, cannot be enforced in the state.A division bench of the Court comprised of Justice Muzaffar Hussain Attar and Ali Muhammad Magrey underlined how the SARFAESI Act is. While …

SARFAESI Act cannot be enforced in Jammu and Kashmir, rules the J&K High Court
9 years, 8 months ago

SARFAESI Act cannot be enforced in Jammu and Kashmir, rules the J&K High Court

Live Law  

In a landmark judgment, the Jammu & Kashmir High Court has held recently that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, enacted by Parliament in 2002, cannot be enforced in the state.A division bench of the Court comprised of Justice Muzaffar Hussain Attar and Ali Muhammad Magrey underlined how the SARFAESI Act is. While …

Lenders Beware, the Property is Leased
10 years, 11 months ago

Lenders Beware, the Property is Leased

Live Law  

The Supreme Court has given a very important judgement last week where the Court considered the validity of leases created on mortgaged property. Accordingly, a lease created on a mortgaged property shall be valid if it complies with Section 65A of TP Act, unless there is anything under the SARFAESI Act which affects the right of a borrower to create …

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