• May
  • 20
  • 2011

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

Posted In Corporate Law | | 11 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).


11 Responses to “Supreme Court stays further action under SARFEASI Act in respect of Co-operative Bank cases in DRTs”

  1. S Radhakrishnan says:

    All the tagging in the SARFAESI issues relating to Co-operating Banks were tagged by the then Chief Justice Shri Kabir of whom the less said the better. My question is why the leading Co-operative Banks are not moving a special leave petition before the Hon’ble Supreme court for expediting the matter.

  2. Hetalkumar Hindocha says:

    After recent Amendment in SARFAESI Act, the Multi State Co-operative Bank is Included in defination of Bank and it can use the SARFAESI rights. But some of the DRT is of the view that the said notification published in official Gazzete of India, does not disclosed it’s retrospective effect, meaning thereby, whatsoever action took by the Multi State Bank under SARFAESI before passing of notification in January – 2013, can be vitiated as it is not having any retrospective effect. Can you guide further!
    Regards,
    Hetalkumar Hindocha
    07600022480

  3. S Radhakrishnan says:

    Is it not surprising that Supreme Court has not expedited disposal of the matter pertaining to applicability of SARFAESI Act to Co-operative Banks though the matter is pending before them since last about 6 years?  It is the depositors’ money which is at stake. The borrowers enjoy at the cost of depositors and no thought has been given to this point by the Honourable Supreme Court. More surprising is that none of the leading Co-operative Banks bother to file a PIL before the Supreme Court for expediting the disposal of the long pending matter. May God Save our India.

  4. Rabin Majumder says:

    Dear Sir,

    I shall be attending the hearing of the tagged appeals/petitions (Khaja Industries, et al) which are slated for disposal on 20.7.2011. I have also filed two separate writ petitions on similar issue.

    Please wait for the update.

    Rabin Majumder
    Advocate-on-Record
    Supreme Court of India
    New Delhi

  5. Narendra Sharma says:

    Contact details of Mr. Bharat Gandhi, Advocate, Mumbai

    M – 09821099056

    E-mail – advocate_blgandhi@hotmail.com

  6. Vijay says:

    My case is with DRT and as I learnt that Mr. Bharat Gandhi able to obtain stay by tagging the application with M/s. khaja industries. As I read trail communication that PIL is trying to filed to get general order for stay for all individual, please advice what shoud I do? Shall I also go to supreme court or wait for PIL to get order.
    Please advice.

  7. Vijay says:

    I request you to please provide any development occur regarding “SARFEASI ACT” TO CO-OPERATIVE BANK and “STAY” received by some party from Supreme Court

  8. Dinesh Raka says:

    MULTI-STATE BANK’S ACTION UNDER SARFAESI ACT AGAINST ME AND IT IS CHALLENGED IN DRT-III MUMBAI BUT DIDN’T GET THE STAY AS MULTI-STATE BANK CAN TAKE THE ACTION UNDER SARFAESI ACT.
    WHAT TO DO ? BECAUSE AUCTION WILL BE HELD ON 2ND JUNE 2011.
    PLEASE REPLY SOON

  9. Narendra Sharma says:

    As desired, a REQUEST has been sent to THE APEX BODY OF URBAN BANKS=NAFCUB NEW DELHI=to TAKE THE LEAD IN FILING THE PIL IN THIS BEHALF.

  10. vn kulkarni says:

    THIS IS VERY USEFUL SUGGESTION.KINDLY REQUEST THE APEX BODY OF URBAN BANKS=NAFCUB NEWDELHI=.THEY CAN TAKE THE LEAD IN FILING THE PIL IN THIS BEHALF.THEIR E-MAIL ADDRESSIS AS UNDER.

    coop@nafcub.org

  11. Narendra Sharma says:

    NOTE: This information has been reproduced, with permission, from DRT Solutions Weekly Mail – 158th Issue dated 20th May’11 (Web site – www. drtsolutions.com ). Anyone interested may receive such information direct in his inbox by sending a request to E-mail-ramkishan@drtsolutions.com and/or ramkishandrt@gmail.com

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