Whether the provisions contained in the SARFAESI Act, 2002 would have a march over the relevant provisions contained in the Odisha Protection of Interest of the Depositors Act, 2011 (OPID Act) or not? – Sundaram Home Finance Ltd. Vs. District Magistrate-Cum- & Collector, Khordha and Others – Orissa High Court
Hon’ble Orissa High Court held that:
(i) With the assent of the President to the State Odisha Protection of Interest of the Depositors Act, 2011 (OPID Act), some provisions of which stand in conflict/ inconsistent with the provision of SARFAESI Act, said provisions of the OPID Act will prevail in the State of Odisha and over ride the provision of SARFAESI Act to said extent and the attachment as provided in OPID Act may stand on the way of the same in taking over possession as the secured asset and transfer for recovery of the loan dues at the behest of the Bank/Financial Institution advancing the loan.
(ii) A ‘priority’ conferred/provided under section 26E of the SARFAESI Act subject to the conditions as laid down being fulfilled would prevail over the recovery mechanism of the OPID Act, which even though had received the Presidential assent after the SARFAESI Act, the very amendment to SARFAESI Act with introduction of section 26E in the said Act coming into force thereafter carrying a non-obstante clause would have a march over all said provisions of the OPID Act which had its march over the SARFAESI when it had come into force after the Presidential assent.