Topic
Asset recovery in Indian law refers to the legal process by which secured creditors or courts reclaim pledged or fraudulently acquired assets, primarily under statutes like SARFAESI Act and MPID Act.
Bombay High Court upholds Official Liquidator's claim to five paintings in Mafatlal Dyes liquidation, rejecting family claimants' objections and appointing art auction expert.
The NCLAT held that, under Section 60(5) of the IBC, the adjudicating authority can issue personal directions to suspended directors of a debtor to locate and recover leased electric vehicles. This expands the tools available to resolution professionals during a CIRP.
Kerala High Court rules that financial corporations acting as trustees under the SFC Act must ensure procedural fairness in asset sales, invalidating auctions where properties are sold to nominees of bidders. The judgment reinforces fiduciary obligations, impacting asset recovery and banking litigation.
The Bombay High Court has ruled that a secured creditor’s rights under the SARFAESI Act, including possession orders under Section 14, take precedence over conflicting arbitration awards and judicial attachments - even when the debtor is a decree holder. This clarifies that equitable mortgage registration and CERSAI compliance empower banks to bypass civil litigation outcomes, reshaping asset recovery strategies across financial institutions.
Chhattisgarh High Court holds that a Tahsildar must execute a Section 14 SARFAESI Act possession order within 30 days, even if the borrower has filed a Section 17 application before the DRT, unless a stay order is granted. The ruling reinforces that statutory duties under the SARFAESI Act cannot be deferred on procedural grounds, ensuring timely asset recovery for secured creditors.
Bombay HC rules that bona fide purchasers who register vehicles in their name before any legal prohibition cannot be deprived of their property, even if the seller is accused of financial fraud under the MPID Act, unless collusion is proven. The judgment reinforces the protection of innocent buyers in asset recovery proceedings, impacting fraud victims and law enforcement agencies.
Bombay High Court mandates police assistance for execution of SARFAESI Act orders, affirming that secured creditors cannot be left to fend for themselves against repeated trespass.
Bombay High Court mandates police compliance with court-ordered asset possession, emphasizing rule of law and penalizing obstruction by borrowers or officials.
Kerala High Court holds that gold ornaments given at marriage and retained by husband must be returned; documentary evidence and photographs establish entitlement.