Case Law Details
State Bank of India Vs State of Himachal Pradesh & Ors. (Himachal Pradesh High Court)
Himachal Pradesh High Court held that the provisions of Section 26E of the Securitisation and Reconstructions of Financial Assets and Enforcement of Security Interest Act (SARFAESI) Act, 2002 shall override the rights of others to recover the outstanding liability of taxes dues etc on the mortgaged/charged property from the original owner etc.
Facts-
M/s Aradhna Wines had availed various financial assistance/loan facilities from the erstwhile State Bank of Patiala. One of its partners, Mr Anil Dogra, had mortgaged his property by depositing original sale/title deeds with the State Bank of Patiala relating to property measuring 195-27 sq. mts.
Since the loanee had failed to repay the entire loan amount, its accounts were declared as Non-Performing Assets (NPA) and recovery proceedings were initiated under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest 2002 (SRFAESI Act).
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