SARFAESI Act

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Introduction:

A division bench of the Hon’ble Supreme Court, comprising Hon’ble Chief Justice D.Y. Chandrachud and Justice J. B. Pardiwala in Celir LLP v. Bafna Motors (Mumbai) Pvt. Ltd. and Ors[1] on September 21, 2023, held that a borrower only has right of mortgage redemption till the publication of auction notice under Section 13(8) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (“SARFAESI Act”). The Hon’ble Supreme Court analysed orders passed by various Hon’ble High Courts in interpreting the provisions of Section 13(8) of the SARFEASI Act, post the amendment in 2016 (“Amendment”) and the intent of the Amendment.Continue Reading Section 13(8) of SARFAESI Act: SC settles conundrum on right of redemption of borrower

Priority Of Dues Under SARFAESI - Bombay High Court Reiterates

In a significant order passed on June 28, 2023, in the case of Ronak Industries vs. Assistant Commissioner Central Excise & Customs & Ors.[1] (“Ronak Industries Case”), the Bombay High Court has upheld the priority of dues of secured creditors as laid down under Section 26-E of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”). To pass the order, the Bombay High Court has relied on its previous decision in Jalgaon Janta Sahakari Bank Ltd. and Anr. Vs Joint Commissioner of Sales Tax Nodal 9, Mumbai and Anr.[2] and the decision of the Supreme Court in  ICICI Bank Ltd. vs. SIDCO Leathers Ltd.[3]and held that the dues of a secured creditor, upon registration of the charge with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (“CERSAI”), would rank in priority to the dues of the department of the Government.Continue Reading Priority Of Dues Under SARFAESI: Bombay High Court Reiterates