Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002: |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Securitization and Reconstruction of Financial Assets and C Enforcement of Security Interest Act, 2002: s. 13(2) - Appellant-Educational Trust took loan of Rs. 75 crores from respondent No. 1 (HUDCO) - Properties Nos. 1 to 6 mortgaged - Recovery proceedings by HUDCO under 1993 Act - 21 acres out of the mortgaged property No. 6 was exchanged by D the Trust with Awas Parishad - Thereafter agreement to sell property No. 6 comprising of 63.45 acres (including the 21 acres obtained in exchange) by the Trust with a construction company - Part payment (Rs. 9 crores) obtained from the construction company paid by the Tnist with HUDCO - In arbitration proceedings between the Trust and the construction company in respect of specific performance of the agreement, interim injunction was passed not to sell the property in question therein - Proceedings by HUDCO under SARFAESI Act - Dispute as regards the Property No. 6 (which included 21 acres exchanged land) between the Trust and the construction company, as to whether it could be sold under F SARFAESI Act for satisfying the dues of the Trust - Held: 21 acres out of the property No. 6 (which was obtained in exchange) was unencumbered - It cannot be treated as accession to property under mortgage within purview of s. 70 of Transfer of Property Act - Therefore HUDCO does not have first right to sell the 21 acres of G land- It has right qua the other mortgaged properties (i:e. properties Nos. 1 to 5 and 43 acres of property No. 6) to realize the dues at the first instance - The Trust is directed to settle the scheme for payment with HUDCO - On failure by the Trust to settle the scheme, it would be open to HUDCO to sellĀ· approximately 43 acres of land (of the mortgaged property No. 6) - if proceeds from the sale thereof are H not sufficient to satisfy the dues, it can sell the property Nos. 1 to 5 or its part which may be necessary for realization of the outstanding A dues - Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - Transfer of Property Act, 1882 - s. 70. Transfer of Property Act, 1882: s. 70 - Doctrine of accession - Meaning and Scope of - Discussed. Words and Phrases: 'Accession' - Meaning of. in the context of Transfer of Property Act, 1882. |
Judge | Hon'ble Mr. Justice Arun Mishra |
Neutral Citation | 2017 INSC 1288 |
Petitioner | Maharaji Educational Trust |
Respondent | Housing & Urban Development Corporation Ltd. & Ors. |
SCR | [2017] 4 S.C.R. 790 |
Judgement Date | 2017-05-08 |
Case Number | 6463-65 |
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