9911796707
TMI Blog2003 (8) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002. All the petitioners are the persons or bodies corporate who had taken financial assistance from various financial institutions. According to the Financial Institutions the petitioners had committed defaults in repayment of their dues. They are in huge defaults. Having not been to recover their dues, they have taken recourse to the provisions and the rules afore-noticed particularly section 13 of the Act, vide which they have attached the properties and are intended to take possession or sell the said properties, mortgaged and/or hypothecated by way of security to the financial institutions. In some of the cases they have even taken possession of the industrial units. 2. The petitioners are mainly aggrieved from the action of the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of dues despite notice and huge amounts are due and payable to the financial institutions, as such recourse to the provisions under different provisions of the Act. 6. The counsel for the petitioners have placed reliance upon the judgments of Hon'ble Supreme Court in the case of Dwarkadas Marfatia & Sons v. Board of Trustees of the Port of Bombay [1989] 3 SCC 293; Andhra Pradesh State Financial Corpn. v. GAR Re-Rolling Mills AIR 1994 SC 2151 and K. Subba Reddy v. Andhra Pradesh State Financial Corpn. AIR 1987 AP 119 (FB) in support of their contentions. 7. In order to notice the submissions made on behalf of the petitioners, which have been controverted by the respondents, can be summed up as under:-- (a) The provisions of section 13(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and under section 12 it is obligatory upon the Reserve Bank of India to furnish guidelines. Then alone action can be taken for enforcing these provisions. 8. We have heard this matter at some length because learned counsel for the financial institutions had implicitly argued that the petitioners are not entitled to benefit of interim orders granted by the different Benches of this Court. During the course of hearing, learned counsel for the parties had placed on record a letter/circular issued by the Reserve Bank of India dated 23-4-2003 which reads as under:-- "Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Issue of final guidelines and directions. The Reserve Bank had issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for in section 9 of the Act, until guidelines in this regard are notified by the Reserve Bank of India. As regards enforcement of security interest. Securitisation Companies and Reconstruction Companies may follow the Security Interest (Enforcement) Rules, 2002 notified by the Government of India as also the relevant provisions in the Act. 3. The Bank has already issued the format of the application form for issue of a Certificate of Registration earlier vide its Notification No. DNBS 1/OGM (CSM)-2003 dated March 7, 2003. Companies desirous of commencing the business of securitisation and reconstruction have to apply in the prescribed format (annexed to Notification No. DNBS 1/CGM (CSM)-2003 dated March 7, 2003), which can be downloaded f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in one petition or the other before the Hon'ble Supreme Court. Thus, we are of the considered view that it is not appropriate for this Court to deal with the merits or demerits, legality or otherwise of the contentions raised before us. Once the matters are subjudice before the highest court of the land, most appropriate course for this Court would be to await the decision of the Hon'ble Supreme Court. 11. When the writ petitions were initially filed before the Hon'ble Apex Court and/or the High Court, the ordinance itself was challenged. How- ever, during the pendency of the proceedings the Act was promulgated. The Hon'ble Supreme Court passed two interim orders dated 4-10-2002 and 10-2-2003. Both of them read as under:-- Order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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