SARFAESI Act challenges kept pending as interim protection continues until the Supreme Court decides the constitutional issues.

Challenges to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 were not examined on merits because the same constitutional and statutory issues were already pending before the Supreme Court. To preserve the status quo, the High Court extended to the petitioners the same interim protection granted by the Supreme Court, while noting that the Reserve Bank of India was framing further guidance on the exercise of powers under the Act. The writ petitions were adjourned sine die, with liberty to revive them after the Supreme Court delivers its judgment.

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Issues: Whether the writ petitions challenging the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 should be decided on merits or kept pending, and whether the petitioners were entitled to the same interim protection as granted by the Supreme Court.

Analysis: The petitions raised constitutional and statutory objections to the enforcement measures under the Act, but the same issues were already pending before the Supreme Court. In view of the sub judice status of the controversy before the highest court, the Court declined to examine the merits of the challenges at that stage. The Court also noted the Reserve Bank of India's circular indicating that further guidance was being framed in relation to the exercise of powers under the Act. To maintain balance pending the Supreme Court's decision, the Court directed that the petitioners should receive the same interim protection as had been granted by the Supreme Court.

Conclusion: The Court declined to enter into the merits, granted the petitioners interim protection in line with the Supreme Court's orders, and adjourned the writ petitions sine die with liberty to revive them after the Supreme Court's judgment.

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