We'Ken- International Journal of Basic and Applied Sciences

Amit M. Savadi ¹

Affiliations
1 N. S. Soti Law College, Sangli, Maharashtra, IN

Abstract

Before SARFAESI Act 2002 , the Debt Recovery Regime in India was absolutely a Pro-Debtors regime and judicial mechanism was also not at par with global standards, resulting in piling of NPA.s. Therefore SARFAESI act 2002 was enacted with the desired objective of reducing NPAs. Initially, there was opposition to the Act through challenge proceedings ï¬led in DRTs to writ petitions ï¬led in High Courts. The Judicial pronouncements which unearth the sentential legis and strengthen the Creditors Protection regime are worth recapitulation.

Keywords

Debt Recovery, Creditors Protection, Security Interest.

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Amit M. Savadi ¹

Affiliations
1 N. S. Soti Law College, Sangli, Maharashtra, IN

Abstract

As a coin has two sides, a statutory provision / a rule is also capable of having more than one meaning and to ascertain the intended meaning of legislature is the province of sovereign courts. The statement of objects and reasons of SARFAESI Act 2002 throws ample light on intention of the legislature to legally empower the creditor in terms of enforcement of security interest. However any action – legislative or administrative, must live up to the standard of reasonableness and balance the conflicting interest. SARFAESI Act 2002 when enacted was perceived as draconian by the debtors and was also branded as absolutely Pro-creditor, therefore it becomes pertinent to examine whether the judicial pronouncements have an absolute Pro-Creditor interpretation or they have also protected the legal rights of borrowers.

Keywords

Debt Recovery, Creditors Protection, Security Interest

Full Text