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.
Kerala: The Kerala High Court dismissed two writ petitions filed by M/S. M.D. Esthappan Infrastructure Pvt. Ltd. and its proprietor, M.D. Esthappan. The petitions challenged the enforcement proceedings initiated by Dhanlaxmi Bank Ltd. under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
The Bombay High Court imposed fine on a litigant Rs.5 lakh for challenging the law that gives immunity to judges. The Court said her claims against two NCLT members were false and not supported by evidence. It also found no good reason to consider her petition. The fine was imposed for misusing the legal process.
The Allahabad High Court emphasized collaboration among stakeholders to address Non-Performing Assets (NPAs) and ensure banking system security. Justices Varma and Saraf rejected the suspension of SARFAESI Act proceedings based on an injunction without a registered lease deed in the case involving M/S Trilokchand Fabrication. They emphasized the Act’s pivotal role and the need to curb unnecessary litigation delaying NPA resolution. The court clarified that unregistered leases cannot impede SARFAESI Act proceedings and nullified the suspension order in this case.
