MANU/SC/0323/2004

BomLR DRJ

IN THE SUPREME COURT OF INDIA

Transfer Case (Civil) Nos. 92-95 of 2002 and 10 of 2003 and Civil Appeal No. 2173 of 2004 (Arising out of SLP (C) No. 15566 of 2003), Civil Appeal No. 2171 of 2004 (Arising out of SLP (C) No. ... of 2003(CC 10728), Civil Appeal No. 2175 of 2004 (Arising out of SLP (C) No. 11267 of 2003), Civil Appeal No. 2176 of 2004 (Arising out of SLP (C) No. 11089 of 2003), Civil Appeal No. 2177 of 2004 (Arising out of SLP (C) No. 5013 of 2003), Writ Petition (Civil) Nos. 649 of 2002 and 366 of 2003 and Transfer Petition (Civil) Nos. 326 and 403 of 2003

Decided On: 08.04.2004

Appellants: Mardia Chemicals Ltd. and Ors. Vs. Respondent: Union of India (UOI) and Ors.
[Alongwith Writ Petition (Civil) Nos. 541, 643 and 673 of 2002, 48, 140, 147, 176, 190, 219, 231, 279, 292, 322, 379, 477, 496, 499, 545, 546, 557 and 590 of 2003 and 13 of 2004, Transfer Case (Civil) Nos. 11, 12 and 46 of 2003, Civil Appeal No. 2181 of 2004 (Arising out of SLP (C) No. 9658 of 2003) and Transfer Petition (Civil) No. 756 of 2003]

Hon'ble Judges/Coram:
V.N. Khare, C.J., Brijesh Kumar and Arun Kumar

JUDGMENT

Brijesh Kumar, J.

1. Leave granted in Special Leave Petition (Civil) Nos.5013/2003, 9658/2003, 11089/2003, 11267/2003, 11268/2003, 15566/2003, 17465/2003 and special leave petition @ CC 10728 and SLP(C) No. 6723/2003.

2. By means of the above noted bunch of cases some of those having been transferred to this court, the validity of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002) (for short 'the Act') has been challenged. Some writ petitions were filed in different High Courts on promulgation of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Second Ordinance), 2002. However, the Act 54 of 2002 was enacted and enforced, vires of which is in question, more particularly, the provisions as contained in Sections 13, 15, 17 and 34 of the Act. Besides others, we may, for the sake of convenience, refer to the averments made and documents filed in Transferred Case Nos.92-95 of 2002 - M/s.Mardia Chemicals Ltd. Etc. Etc. Vs. Union of India & Ors. Etc.Etc.

3. It appears that a notice dated July 24, 2002 was issued to the petitioner - Mardia Chemicals Ltd. by the Industrial Development Bank of India (for short 'the IDBI') under Section 13 of the Ordinance, then in force, requiring it to pay the amount of arrears indicated in the notice within 60 days, failing which the IDBI as a secured creditor would be entitled to enforce the security interest without intervention of the court or Tribunal, taking recourse to all or any of the measures contained in sub-section (4) of Section 13 namely, by taking over possession and/or management of the secured assets. The petitioner was also required not to transfer by way of sale, lease or otherwise any of the secured assets. Similar notices were issued by other financial institutions and banks und........