Supreme Court of India held Insolvency and Bankruptcy Code cannot replace decree execution. Bench of Pamidighantam Sri Narasimha and Alok Aradhe restored NCLT order, imposed costs.
The Supreme Court ruled that Section 35 of the SARFAESI Act cannot override any provision of the Constitution, including special protections under Article 371A for Nagaland. The Court held that SARFAESI action taken before the Act’s adoption in Nagaland was without jurisdiction and legally invalid.
