Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

The petitioners challenged the constitutionality of sections 34(1), 47(1)(a)(i) and 58(1)(a)(i) of the Consumer Protection Act, 2019, which base the pecuniary jurisdiction of district, state and national consumer commissions on the value of consideration paid rather than the compensation claimed. The challenge arose fr…

The appellant purchased a mortgaged property at an auction conducted on 31 July 2007 and received a sale certificate on 30 November 2007, thereafter developing the property. The guarantor of the original borrower challenged the auction before the Debt Recovery Tribunal, which set aside the sale; the decision was later …

The Bank of Baroda issued a possession notice under the SARFAESI Act to recover defaulted loans, but a clerical error inflated the outstanding amount, leading the borrower Phoenix India to allege defamation and file a criminal complaint under Sections 499, 500 and 501 IPC against the Bank's senior officers. The magistr…

The petitioner, an MSME, defaulted on a loan from NKGSB Co‑operative Bank and its account was classified as a non‑performing asset (NPA) with a demand notice issued under Section 13(2) of the SARFAESI Act. The petitioner contended that, under the 2015 Notification containing the ‘Framework for Revival and Rehabilitatio…

GBJ Hotels Private Limited had its bid of Rs.108 crore accepted in an auction under the SARFAESI Act for assets of defaulting borrowers who owed about Rs.135 crore to Edelweiss Asset Reconstruction Company Limited (ARCL). A third party, GRT Hotels, subsequently offered a higher amount of Rs.120 crore, prompting the Mad…

The Central Bank of India granted a Rs 10 crore project loan to advertising firm Ad Bureau for post‑production of a movie, which later defaulted and was classified as an NPA. After a one‑time settlement and issuance of a No‑Dues Certificate, the bank erroneously reported the firm as a wilful defaulter to RBI, causing l…

The appellant, Edelweiss Asset Reconstruction Ltd (EARC), challenged a Karnataka High Court order that dismissed its writ petition and directed the transfer of Rs.75 lakh deposited by it to the EPFO. The dispute arose from the default of Acropetal Technologies Ltd in paying provident fund dues, leading to EPFO assertin…

The Delhi Development Authority (DDA) had allotted a plot to Sarita Vihar Club under a lease that gave DDA a pre‑emptive right to purchase and required Lieutenant Governor’s consent for any mortgage. The Club mortgaged the plot to Corporation Bank without such consent, defaulted on the loan and the Bank sought recovery…

The appellant, a borrower, defaulted on a loan from The Federal Bank and the bank classified the loan as a Non‑Performing Asset, invoking SARFAESI provisions. The High Court ordered the appellant to pay Rs.2 crore immediately and the balance in twelve instalments, which the appellant challenged by a Special Leave Petit…

The appellants, shareholders of RBT Private Ltd., filed a contempt petition alleging that the respondent, a fellow shareholder, willfully violated court and arbitral orders by removing assets and failing to pay loan EMIs. A Single Judge of the Delhi High Court on 5 December 2023 held the respondent guilty of contempt a…

The State Bank of India (SBI) had secured credit facilities from Tanya Energy Enterprises, which defaulted and faced recovery proceedings under the SARFAESI Act and the Recovery of Debts and Bankruptcy Act. SBI introduced a One Time Settlement (OTS) 2020 Scheme requiring a 5% up‑front payment for any application, but t…

The appellant, PNB Housing Finance Ltd., took symbolic and later physical possession of a premises that had been offered as security for a loan to the borrower (2nd Respondent) after the borrower defaulted. The 1st Respondent claimed to be a tenant of the premises since 1987 under an unregistered lease and sought resto…

The complainant, a sub‑contractor, alleged that the appellants (directors of Bharat Udyog Ltd.) had partially paid him for work on a sewerage plant and had forged engineers' signatures to claim they performed the work. He filed an FIR alleging cheating, forgery and related offences under the IPC, seeking recovery of th…

The Supreme Court examined whether secured creditors could claim priority over assets attached under the Prevention of Money Laundering Act (PMLA) and the Maharashtra Protection of Investors and Depositors Act (MPID Act) by invoking the SARFAESI Act and the Recovery of Debts and Bankruptcy (RDB) Act. It also considered…

The case concerned an auction of land owned by Prestige H.M. Polycontainers Ltd., which was mortgaged to a bank and later assigned to ARCIL. The Tahsildar conducted the auction without observing the mandatory 30‑day notice period and issued the sale certificate and possession to the appellant, Al‑Can Export Pvt. Ltd., …

The plaintiff, Smt. Prabha Jain, inherited a one‑third share of a plot that was illegally partitioned and sold by her brother-in‑law; the buyer later mortgaged the plot to Central Bank of India, which took possession under the SARFAESI Act. Jain filed a civil suit seeking declaration that the sale deed and mortgage dee…

Shri Sendhur Agro & Oil Industries, a proprietorship based in Coimbatore, defaulted on an overdraft facility and Kotak Mahindra Bank filed a complaint under Section 138 of the Negotiable Instruments Act in the Judicial Magistrate Court at Chandigarh. The petitioner sought transfer of the criminal case to a court in Tam…

The appellants, MSME borrowers, challenged the classification of their loan accounts as non‑performing assets by Canara Bank and other banks, contending that the banks had violated the procedural framework prescribed in the Government’s 29 May 2015 Notification under Section 9 of the MSMED Act. The High Court had held …