Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | SARFAESI Act s. 31(i) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 : s. 31(i) – Provisions of the Act not to apply to security interest created in agricultural land – Respondent No. 1-debtor availed credit facilities from the Bank and owing to default in payment, declared NPA – Bank issued possession notice of the properties and e-auction held – Challenged to – One of the property purchased by the appellant-auction purchaser – DRT confirmed the sale in favour of the appellant – In writ petition, the High Court set aside the e–auction and sale certificate – On appeal, held: High Court ought not to have entertained Writ Petition as there was a remedy of appeal before the DRAT – By entertaining the writ petition straightway under Art. 226/227 challenging the order passed by the DRT, the High Court allowed/permitted the borrower to circumvent the provision of appeal before the DRAT under the provisions of the SARFAESI Act – There was no breach of r. 8(1) & (2) of 2002 Rules as the possession notices were published in two leading newspapers and served upon borrowers – There was no breach of r. 9(3) of the 2002 Rules as the entire 25% of the sale proceed was deposited the very next day of sale – Also, no breach of r. 9(4) of the 2002 Rules – Merely because the secured property is shown to be agricultural property is not sufficient for s. 31(i) – Properties must actually be used as agricultural land when the security interest was created – No evidence was led to show that property was actually put to use as agricultural land or any activity was going on – Burden was upon the borrower to prove that the secured properties were agricultural lands and actually being used as agricultural lands and/or agricultural activities were going on – Order of the High Court set aside and that of the DRT restored – Security Interest (Enforcement) Rules 2002. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2023 INSC 17 |
Petitioner | K. Sreedhar |
Respondent | M/s Raus Constructions Pvt. Ltd & Ors. |
SCR | [2023] 1 S.C.R. 579 |
Judgement Date | 2023-01-05 |
Case Number | 7402 |
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