A Constitution Bench of the Supreme Court affirmed that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘the SARFAESI Act’) will also apply to co-operative banks and that Parliament was competent to amend Section 2(c) of the SARFAESI Act by adding sub-clause ‘(iva) a multi-State co-operative bank’. The issue was finally settled after the uncertainty created by several conflicting decisions of the Supreme Court on the subject.
The Court examined the following issues in depth :
The Court concluded that:
 Greater Bombay Coop. Bank Ltd. v. United Yarn Tex (P) Ltd. and Ors., Delhi Cloth & General Mills Co. Ltd. v. Union of India and Ors., T. Velayudhan Achari and Anr. v. Union of India and Ors. and Union of India and Anr. v. Delhi High Court Bar Association and Ors.
This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.
The Bar Council of India does not permit solicitation of work and advertising by legal practitioners and advocates. By accessing the Shardul Amarchand Mangaldas & Co. website (our website), the user acknowledges that: