Case Law Details
The Supreme Court last week ruled that Industrial Finance Corporation of India is a ‘public financial institution’ under Section 4A of the Companies Act and it was entitled to invoke the Securitisation Act to enforce a “security interest”. Upholding the view of the Delhi high court in the appeal case, Bharat Steel Tubles Ltd vs IFCI, the apex court stated that the conversion of the IFCI into a company did not alter its position and status as a financial institution in view of Section 5 of the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act. All matters, including all benefits, relating to the corporation, stood wholly transferred in favor of the new company.
SUPREME COURT OF INDIA
M/s. Bharat Steel Tubes Ltd. etc. Vs. IFCI Ltd. & Ors.
Special Leave Petition (Civil) Nos. 9728- 9729 of 2011 (CC 4966-4967 of 2011)-Decided on 4-4-2011.
Financial Institution
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