National Spot Exchange Limited Vs Union of India & Ors. (Supreme Court of India)
Supreme Court held that no priority of interest can be claimed by the Secured Creditors against the properties attached under Maharashtra Protection of Investors and Depositors Act, 1999 [the MPID Act]. Provisions of MPID Act would override any claim for priority of interest by the Secured Creditors in respect of the properties attached under the MPID Act.
Facts- The question involved herein is whether the Secured creditors would have priority of interest over the assets attached under the Provisions of Prevention of Money Laundering Act, 2002, (PMLA) and Maharashtra Protection of Investors and Depositors Act, 1999 (MPID Act), by virtue of the Provisions of SARFAESI Act, 2002 and RDB Act, 1993 and whether the properties of the Judgment Debtors and Garnishees attached under the Provisions of MPID Act, 1999 would be available for the execution of the decrees against Judgment Debtors in view of the Provision of Moratorium under Section 14 of the IBC, 2016.
Conclusion- In the case at hand, the SARFAESI Act and RDB Act having been enacted by the Parliament for the subject matter falling in List-I and the MPID Act having been enacted by the State Legislature for the subject matter falling in List-II in the Seventh Schedule, the latter would prevail in the State of Maharashtra in respect of the specific subject matter for which the said Act was enacted, in view of Clause (3) of Article 246.
