Case Law Details
Parth Concast Ltd. Vs State of Chhattisgarh (Chhattisgarh High Court)
Chhattisgarh High Court held that the provisions contained in SARFAESI Act will prevail over Rules of 2015. Accordingly, the demand of transfer fee made by the CSIDC is not sustainable in law.
Facts-
The petitioner is a Company engaged in the business of producing steel and iron products. The Chhattisgarh State Industrial Development Corporation Limited (CSIDC) had allotted four parcels of land situated at the Industrial Development Center to M/s Brahaspati Iron and Steel Company Private Limited (BISCPL), which is engaged in manufacturing hot and cold rolled products of steel and ancillary purposes, on lease for a period of 99 years.
BISCPL took a loan from the State Bank of India, respondent No.5 after obtaining NOC from CSIDC against the creation of security interest over its leasehold rights in respect of the properties in question. BISCPL defaulted in repayment of its secured debt to respondent No.5 and declared BISCPL as NPA as per the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and informed CSIDC in advance about initiating a proceeding under the provision of Section 13(4) of the SARFAESI Act and for recovery of secured debt, took possession of the secured assets including the right to transfer by way of lease, assignment or sale for realizing the secured asset.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
