Sunday, 24 August 2014

Banking – SARFAESI Act, 2002 – Retrospective – Applicable to loans sanctioned prior to enactment of the Act

The Orissa High Court in Sarthak Builders Pvt. Ltd., Vs Orissa Rural Development Corporation Limited had to decide as to whether provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 can be invoked with reference to the loan transaction entered into prior to coming into force of the said Act? The Hon’ble High Court observed the Act has retrospective effect after reading out the object of the Act.  

3 comments:

  1. CONFLICTING JUDGEMENT-- DECCAN CHORINOCLE HOLDINGS VERSUS UNION OF INDIA ( SARFAESI ACT Cannot govern those transactions which were out of it's scope when they were made as held by hon'ble High court of Andhra Pradesh .

    Yashraj Singh
    ( Advocate)
    L.L.B , CS

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