Whether clause (a) of Section 17(1A) of the SARFAESI Act, 2002 is to be read ejusdem generis with Clauses (b) and (c) of Section 17 (1A) or is disjunctive? | Whether insertion of Section 17(1A) in SARFAESI Act would have any overriding effect over provisions of Recovery of Debts and Bankruptcy Act, 1993 – Ram Pal Soni and Anr. Vs. State of U.P. and Ors. – Allahabad High Court
April 23, 2024
Hon’ble Allahabad High Court held that:
(i) Clause (a) of Section 17(1A) of the SARFAESI Act is disjunctive from clauses (b) & (c) of Section 17 (1-A) of the SARFAESI Act and is to be read separately.
(ii) The insertion of Section 17(1A) of the SARFAESI Act would have an overriding effect over provisions of the Recovery of Debts Due to Banks and Financial Institutions Act 1993.
(iii) Notice issued under Section 13 of the SARFAESI Act would constitute part cause of action as per Section 17 (1-A) of the SARFAESI Act due to which the Debts Recovery Tribunal at Lucknow would also have jurisdiction to entertain the securitisation application filed by the borrowers.
(iv) Section 3 of the Recoveries of Debts due to Banks and Financial Institutions Act 1993 does not confer exclusive jurisdiction vide notifications issued by the Central Governments thereunder and such notifications would be subject to Section 17 (1-A) of the SARFAESI Act.
