Civil Court’s jurisdiction to grant injunction not ousted when secured creditor initiates proceedings on an asset not being a secured asset, holds Kerala HC
9 years, 7 months ago

Civil Court’s jurisdiction to grant injunction not ousted when secured creditor initiates proceedings on an asset not being a secured asset, holds Kerala HC

Live Law  

The Kerala High Court has held in a recent judgment that the bar on the jurisdiction of the civil court to entertain a suit and grant injunction under Section 34 of the SARFAESI Act applies only when an order of injunction is attempted to be granted in respect of any action taken or to be taken in pursuance of any power conferred by or under. The Kerala High Court has held in a recent judgment that the bar on the jurisdiction of the civil court to entertain a suit and grant injunction under Section 34 of the SARFAESI Act applies only when an order of injunction is attempted to be granted in respect of any action taken or to be taken in pursuance of any power conferred by or under the SARFAESI Act and not where a secured creditor or his authorised officer initiates proceedings under Section 13 or 13 of the Act as against any asset other than the 'secured asset'. The Kerala High Court speaking through Justice B Kemal Pasha also held that if a creditor is initiating action against an asset, which is not a ‘secured asset’, he cannot be termed as a ‘secured creditor' under the SARFAESI Act. The Court was thus confronted with the issue as to whether, in a case wherein proceedings under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 are initiated by a secured creditor against any property, which is not a secured asset, the only remedy available to such a person is to have recourse to Section 17 of the said Act?

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History of this topic

Although Magistrate's Jurisdiction U/S 14 Of SARFAESI Act Does Not Involve Adjudication, Order Cannot Be Passed Without Application Of Mind: Kerala HC
1 week, 2 days ago

Although Magistrate's Jurisdiction U/S 14 Of SARFAESI Act Does Not Involve Adjudication, Order Cannot Be Passed Without Application Of Mind: Kerala HC

Live Law  

The Kerala High Court reiterated that while a Magistrate exercising jurisdiction under Section 14 of the SARFAESI Act does not adjudicate on creditor's application for taking possession of the secured assets, they are required to clearly apply mind since it can have drastic consequences. Justice Gopinath P. observed that an order under Section 14 cannot be issued in printed format …

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 …

[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, 1 week 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 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 …

S.17 SARFAESI Act | Recovery Action May Have Disastrous Consequences For Borrower, DRT Must Pass Interim Order Upon Application Of Mind: Kerala HC
1 year, 10 months ago

S.17 SARFAESI Act | Recovery Action May Have Disastrous Consequences For Borrower, DRT Must Pass Interim Order Upon Application Of Mind: Kerala HC

Live Law  

The Kerala High Court recently held that interim orders passed by the Debts Recovery Tribunal under 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 cannot be issued mechanically and without application of mind. On Maintainability The Court held that in cases where the Tribunal has failed to exercise its jurisdiction properly, requiring …

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 …

Challenge Under Section 17 Of The SARFAESI Act Against Action Taken By Secured Creditor, Would Not Bar Arbitration Proceedings: Delhi High Court
2 years, 4 months ago

Challenge Under Section 17 Of The SARFAESI Act Against Action Taken By Secured Creditor, Would Not Bar Arbitration Proceedings: Delhi High Court

Live Law  

The Delhi High Court has reiterated that arbitration proceedings and proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 can go hand in hand. The single bench of Justice V. Kameswar Rao held that even if a party intended to take action under Section 17 of the SARFAESI Act by filing a petition …

Initiation Of Proceedings Under The SARFAESI Act Does Not Bar The Arbitration Of Disputes: Delhi High Court
2 years, 5 months ago

Initiation Of Proceedings Under The SARFAESI Act Does Not Bar The Arbitration Of Disputes: Delhi High Court

Live Law  

The Delhi High Court has ruled that the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 provides a remedy in addition to the adjudication under the Arbitration and Conciliation Act, 1996 and hence, initiation of proceedings under the SARFAESI Act does not bar the arbitration of disputes. The petitioners invoked the arbitration …

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 …

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 …

Private Parties Can't Approach Courts Seeking Attachment Of Properties In Foreign States Under Chapter VIIA CrPC : Kerala High Court
2 years, 11 months ago

Private Parties Can't Approach Courts Seeking Attachment Of Properties In Foreign States Under Chapter VIIA CrPC : Kerala High Court

Live Law  

The Kerala High Court has held that the courts in India cannot entertain any request directly from any private parties or institutions to initiate proceedings for attachment of properties in foreign states and added that such requests can only be made by the Centre or appropriate authorities under Section 105 of Code of Criminal Procedure.Upon examining the legislative intent. The …

[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 …

Secured Creditor Can File Winding Up Petition Despite Obtaining Recovery Certificate From DRT: SC [Read Judgment]
6 years, 2 months ago

Secured Creditor Can File Winding Up Petition Despite Obtaining Recovery Certificate From DRT: SC [Read Judgment]

Live Law  

The Supreme Court has held that a secured creditor can file a winding up petition even after obtaining a decree from the Debts Recovery Tribunal and a recovery certificate based thereon. The bench comprising Justice Rohinton Fali Nariman and Justice Navin Sinha dismissed appeals against Bombay High Court judgment that had rejected the contention that once a secured creditor has …

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 …

Civil Suit Not Maintainable After SARFAESI Proceedings Are Initiated: SC [Read Order]
6 years, 10 months ago

Civil Suit Not Maintainable After SARFAESI Proceedings Are Initiated: SC [Read Order]

Live Law  

The Supreme Court, in Sree Anandhakumar Mills Vs. Indian Overseas Bank, has reiterated that a civil suit would not be maintainable when proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement Of Security Interest Act, 2002, are already initiated.A bench of Justice Ranjan Gogoi and Justice R Banumathi was considering an appeal against a Madras. The Supreme Court, …

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 …

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