Tag: SARFAESI Act

Latest StoriesRegulatory

Bombay HC: Courts Can’t Make Banks Change Loan Terms or OTS

Here’s a rewritten version of the content you provided: NAGPUR: The Nagpur bench of the Bombay High Court has ruled that banks cannot be compelled to alter loan agreement terms or extend benefits of a One-Time Settlement (OTS) scheme to borrowers or guarantors. A division bench comprising Justices Anil Kilor and Rajnish Vyas stated, “Issuing a writ of mandamus under Article 226 of the Constitution would not serve justice by directing the bank to consider OTS benefits for the borrower or guarantor. We cannot order the bank to amend the terms of the agreement.” The ruling was made last Friday…

Latest StoriesRegulatory

SC: Borrowers Lose Property Redemption Post Auction Notice Under SARFAESI

NEW DELHI: On Monday, the Supreme Court ruled that borrowers cannot reclaim property post-publication of an auction notice, as purchasers gain indefeasible rights once a sale certificate is granted by creditor banks and financial institutions under the SARFAESI Act. A bench comprised of Justices J B Pardiwala and R Mahadevan expressed concern about ambiguities in Section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), which was enacted in 2002 for the protection of banks and financial institutions, noting that these ambiguities have led to prolonged litigations. The Court clarified that the…