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

The appellants, borrowers of a public sector bank, sought a one‑time settlement of their non‑performing loan under RBI guidelines, offering to pay Rs 345.31 lacs, but the bank demanded a higher amount and refused. The Debt Recovery Appellate Tribunal directed the bank to settle as per the RBI scheme, a decision later s…

Bharat Steel Tubes Ltd. had borrowed money from Punjab National Bank and entered into a one‑time settlement, paying only part of the amount. It later engaged Assets Care Enterprises Ltd. (ACE) to pay the balance, and ACE assigned its rights to IFCI Ltd. IFCI invoked the SARFAESI Act to enforce security and sought aucti…

The Supreme Court examined whether a Company Court or an Official Liquidator can control the sale of secured assets by a secured creditor under the SARFAESI Act when the borrower is a company under winding up. Pegasus Assets Reconstruction Ltd, the secured creditor, sought to enforce its security over the land of Harya…

Agarwal Tracom Pvt. Ltd. purchased assets of a defaulting borrower at a public auction conducted by Punjab National Bank (PNB) under the SARFAESI Act. After failing to pay subsequent installments, the bank forfeited Agarwal's deposit pursuant to Rule 9(5) of the Security Interest (Enforcement) Rules, 2002. Agarwal chal…

United Bank of India (the appellant) issued notices under Sections 13(2) and 13(4) of the SARFAESI Act and obtained an order under Section 14 against guarantor Satyawati Tondon, without first taking action against the borrower, Pawan Color Lab. The guarantor filed a writ petition under Article 226 seeking an injunction…

Mrs. Leelamma Mathew purchased a secured property advertised as 54 cents in an auction conducted by Indian Overseas Bank under the SARFAESI Act. After paying the full consideration, she received possession of only 39.60 cents, the remaining 14.40 cents having been transferred earlier by the original debtor. She sued th…

The appellants, South Indian Bank Ltd. and others, appealed against the Kerala High Court’s orders allowing borrowers to defer loan repayment under the SARFAESI Act. The borrowers had filed writ petitions under Article 226 challenging notices issued under Sections 13(2) and 13(4) of the SARFAESI Act, even though the De…

The respondents alleged that their son committed suicide after ICICI Bank's recovery agents forcibly repossessed his motorcycle, causing humiliation. A writ petition was filed seeking police action against the bank. The Delhi High Court ordered police reports, found them unsatisfactory, and directed an expeditious inve…

The appellant, who claimed to be a tenant of a flat mortgaged by the borrower to Central Bank of India, sought to stay the bank’s possession of the secured asset under the SARFAESI Act. The bank had issued a notice under Section 13(2) of the SARFAESI Act and obtained an order under Section 14 for physical possession. T…

The borrower defaulted on a loan from UCO Bank, which led to an auction of four mortgaged properties; PHR Invent Educational Society (the appellant) was the highest bidder and paid the full consideration, after which the sale was confirmed and registered. The borrower filed a securitization application under the SARFAE…

The State Bank of India, as authorized officer, conducted an e‑auction of a secured asset of a defaulting borrower. The highest bidder, C. Natarajan, paid 25% of the sale price but failed to pay the balance within the extended deadline and sought further extensions, which were refused. The officer forfeited the 25% dep…

The State Bank of India advanced a Rs. 4.5 crore loan to the appellants on an equitable mortgage and, after default, issued a notice under Section 13(2) of the SARFAESI Act. The bank then filed an application under Section 14 before the Chief Metropolitan Magistrate, which ordered possession of the mortgaged property a…

The borrower (G. Vikram Kumar) failed to repay a loan to State Bank of Hyderabad, which invoked Section 13(4) of the SARFAESI Act and attached the borrower's properties. The Debt Recovery Tribunal (DRT) allowed the bank to sell the properties but excluded seven flats; Flat No.6401 was not among them. The borrower enter…

The Central Bank of India conducted an e‑auction of a secured asset under the SARFAESI Act and the successful bidder, Shanmugavelu, deposited 25% earnest‑money. After being granted a 90‑day extension, he failed to pay the balance and the bank forfeited the entire deposit under Rule 9(5) of the SARFAESI Rules. Shanmugav…

Punjab and Sino Bank had granted cash credit facilities to Allied Beverage Company, which later became a non‑performing asset. The bank recovered the dues through the Debts Recovery Tribunal, which awarded interest at 18% per annum with monthly rests. The High Court modified this order, reducing the pendente lite and f…

Excel Dealcomm Pvt Ltd entered a private treaty agreement with Asset Reconstruction Company (India) Ltd (ARCIL) for the sale of immovable and movable assets under the SARFAESI Act. Excel filed a suit for specific performance in the Calcutta High Court, seeking issuance of a sale certificate that would effect transfer o…