Published on: October 7, 2023 at 12:00 IST
Court: Supreme Court of India
Citation: Kotak Mahindra Bank Ltd. V. Girnar Corrugators (P) Ltd., (2023)
Honourable Supreme Court of India has held that so far as recoveries under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) with respect to the secured assets would prevail over the recoveries under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) to recover the amount under the award/decree passed by the Facilitation Council. It is held that a person being aggrieved by the District Magistrate under provision of Section 14 of the SARFAESI Act has a remedy of appeal under the aegis of Section 17 of the SARFAESI Act.
28. In view of the above and further reasons stated above, the impugned judgment and order passed by the Division Bench of the High Court is unsustainable and the same deserves to be quashed and set aside. Consequently, the present appeal is allowed.
The impugned judgment and order dated 11.08.2017 passed by the Division Bench of the High Court of Madhya Pradesh at Indore in Writ Appeal No. 268 of 2017 is set aside and the judgment and order passed by the learned Single Judge is hereby restored. It is observed and held that so far as recoveries under the SARFAESI Act with respect to the secured assets would prevail over the recoveries under the MSMED Act to recover the amount under the award/decree passed by the Facilitation Council.
It is rightly observed by the learned Single Judge that if respondent No. 1 is aggrieved by the order passed by the District Magistrate under Section 14 of the SARFAESI Act, it will be open for him to initiate proceedings under Section 17 of the SARFAESI Act which be considered in accordance with law and on its merits and subject to the provisions of Section 17 and the provisions of the SARFAESI Act.
Drafted By Abhijit Mishra
