This is a batch of writ petitions before the High Court of Judicature at Bombay concerning the priority of dues between secured creditors (banks and financial institutions) and the taxing/revenue departments of the Central/State Governments, particularly in the context of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and the Recovery of Debts and Bankruptcy Act, 1993 (RDDB Act). The core issue revolves around who has the legal right to claim priority for liquidation of dues from a borrower/dealer upon enforcement of security interest and sale of secured assets.
Several banks and financial institutions have filed writ petitions against the State of Maharashtra and its tax authorities, contesting the attachment and proposed sale of properties mortgaged to them by defaulting borrowers. The banks claim priority over the tax dues based on the SARFAESI Act and RDDB Act, while the state government asserts its statutory first charge on the properties under various state tax laws. The key facts include: (1) Various loans were advanced by banks to different borrowers, secured by mortgages of immovable properties. (2) The borrowers defaulted on their loan repayments, leading to the accounts being classified as Non-Performing Assets (NPAs). (3) The banks initiated recovery proceedings under the SARFAESI Act and RDDB Act. (4) The State
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Reference to rule 8 of Chapter I of the Bombay…
The Parliament enacted the Recovery of Debts Due…
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This is a batch of writ petitions before the High Court of Judicature at Bombay concerning the priority of dues between secured creditors (banks and financial institutions) and the taxing/revenue departments of the Central/State Governments, particularly in the context of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and the Recovery of Debts and Bankruptcy Act, 1993 (RDDB Act). The core issue revolves around who has the legal right to claim priority for liquidation of dues from a borrower/dealer upon enforcement of security interest and sale of secured assets.
Several banks and financial institutions have filed writ petitions against the State of Maharashtra and its tax authorities, contesting the attachment and proposed sale of properties mortgaged to them by defaulting borrowers. The banks claim priority over the tax dues based on the SARFAESI Act and RDDB Act, while the state government asserts its statutory first charge on the properties under various state tax laws. The key facts include: (1) Various loans were advanced by banks to different borrowers, secured by mortgages of immovable properties. (2) The borrowers defaulted on their loan repayments, leading to the accounts being classified as Non-Performing Assets (NPAs). (3) The banks initiated recovery proceedings under the SARFAESI Act and RDDB Act. (4) The State
…Reference to rule 8 of Chapter I of the Bombay…
The Parliament enacted the Recovery of Debts Due…
Sign in to view related legal provisions.