Gujarat Court April 2014 Judgments

ionik Metallics and Others Vs. Union of India and Others

Court: Gujarat

Common Cav Judgment Bhaskar Bhattacharya, CJ. 1. All these Special Civil Applications were heard analogously as in all these matters, the questions that had arisen for consideration were whether the provisions contained in section 2 (1)(o) of the Securitisation And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [hereinafter referred to as the Securitisation Act or SARFAESI Act] and clause 2.1 of the guidelines issued by the Reserve Bank of India known as Prudential Norms on Income Recognition, Asset Classification and Provisioning “ pertaining to Advances are ultra vires the Constitution of India, and, consequently, the actions taken by various Banks concerned under the Securitisation Act are illegal and without authority of law. 2. We, however, propose to treat the Special Civil Application No. 14908 of 2012 as the lead matter. 3. The case made out by the petitioners in SCA No. 14908 of 2012 may be summed up thus: [a]. The petitioners are the b...