#Securitisation Act

The Bombay High Court has ruled that a secured creditor who registered its interest with CERSAI before GST dues arose is entitled to priority over tax claims, even when the asset is sold via private treaty after failed auctions. This clarifies that GST authorities cannot impose charges on property already encumbered under SARFAESI, reinforcing the enforceability of secured lending rights in distressed asset recovery.

The Bombay High Court has ruled that state authorities cannot refuse to assist secured creditors in reclaiming possession of secured assets from trespassers, even if borrowers have filed objections before the DRT. This clarifies that the enforcement mechanism under Section 14 is not stayed by pending proceedings, reinforcing the creditor’s statutory right to immediate possession.

Bombay HC quashed criminal proceedings under IPC Sections 406/420 where the loan was repaid and a No Due Certificate was issued, holding that mere civil disputes cannot be criminalized without proof of dishonest intent. The ruling reinforces safeguards against misuse of criminal law for debt recovery.

Bombay HC rules that initiation of IBC proceedings after issuance of a sale certificate under the Securitisation Act cannot invoke moratorium to stall possession by auction purchasers. The court condemns chronic defaulters' misuse of IBC to delay enforcement, affirming secured creditors' and purchasers' rights to proceed with asset takeover.

Bombay High Court rules that a secured asset auction under the SARFAESI Act cannot proceed when another court has already appointed a receiver with physical possession, prioritizing judicial comity over parallel recovery proceedings. The decision mandates deferment of auction until the Debts Recovery Appellate Tribunal addresses the jurisdictional conflict, impacting lenders and borrowers in multi-forum recovery disputes.

Bombay High Court directs banks to halt possession of mortgaged property pending DRT adjudication and grants 4-week abeyance for DRAT appeal under Securitisation Act, 2002.