• May
  • 20
  • 2011

Supreme Court stays further action under SARFEASI Act in respect of Co-operative Bank cases in DRTs

Article ID 41348 | Posted In Corporate Law | | 12 Comments » Print Friendly and PDF

Mr. Bharat Gandhi, Advocate, Mumbai has informed us that in respect of the parties whose cases are pending in DRTs, if one approaches the Supreme Court under Article 32 of the Constitution, the Supreme Court is issuing ex-parte stay orders restraining further action under the SARFEASI Act. The matters are tagged with the case of Khaja Industries in respect of which the vires of notification has been challenged, issued by the Central Govt in 2003, by which the co-operatives banks are invoking provision of SARFEASI Act. Mr. Bharat Gandhi has obtained such stays in few cases recently. 

Our View- PIL may be filed in Supreme Court requesting issue of general order to save time and cost in individual cases. In fact the whole matter of Co-operative Banks is under consideration with the Supreme Court and the Govt. for several years and hence why the individual parties should be burdened with additional time and cost in obtaining such stays. Till such PIL is filed and order obtained, one has to continue to approach the SC for individual cases.

Attached: Stay Order dated 12.05.2011

Daya Builders and Ors. Vs Union Bank of India

Compiled by :- Narendra Sharma, Consultant (Legal), E-mail: nkdewas@yahoo.co.in

NOTE: The above information has been reproduced, with permission, from DRT Solutions Weekly Mail – 158th Issue dated 20th May’11 (Web site – www.drtsolutions.com).