Hindon Forge Pvt. Ltd. vs The State of Uttar Pradesh - Supreme Court Important Judgment

 Hindon Forge Pvt. Ltd. vs The State of Uttar Pradesh - Supreme Court Important Judgment 2018 - 

On 1st November, 2018, in the case of M/s Hindon Forge Pvt. Ltd. & Anr. v. The State of Uttar Pradesh through District Magistrate Ghaziabad & Anr. [Civil Appeal No. 10873 of 2018], the question for consideration was whether an application under Section 17(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, at the instance of a borrower, is maintainable even before physical or actual possession of secured assets is taken by banks/financial institutions in exercise of their powers under section 13(4) of the Act read with rule 8 of the Security Interest (Enforcement) Rules, 2002. 

The Supreme Court held that the borrower/debtor can approach the Debts Recovery Tribunal under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, at the stage of the possession notice referred to in rule 8(1) and 8(2) of the Security Interest (Enforcement) Rules, 2002.