Fair-rent assessment requires consideration of lease terms, valuation principles and prevailing market rent; the certificate was quashed for fresh rev...
Document Identification Number compliance is satisfied when electronically communicated orders are promptly authenticated through a correctly identifi...
Industrial shrimp-feed machinery classification follows its commercial function, placing integrated production plants under the specific industrial fo...
The court examined whether the suit is barred u/s 34 of the SARFAESI Act. The petitioner, being a shareholder, lacks locus standi to challenge the secured creditor's actions. However, the pleadings allege fraud and collusion between the respondents, including the bank, in sanctioning the loan without due process. The court held that averments of fraud and collusion cannot be rejected outright, and the relief sought for declaring the loan facility and mortgage as null is not within DRT's jurisdiction under SARFAESI Act but permissible under Specific Relief Act. The lower courts erred in considering documents contrary to pleadings. The petitioner cannot be denied remedy against secured creditors' actions. Consequently, the High Court quashed the lower court orders, restoring the plaint to the Commercial Court for adjudication in accordance with law.
The court examined whether the suit is barred u/s 34 of the SARFAESI Act. The petitioner, being a shareholder, lacks locus standi to challenge the secured creditor's actions. However, the pleadings allege fraud and collusion between the respondents, including the bank, in sanctioning the loan without due process. The court held that averments of fraud and collusion cannot be rejected outright, and the relief sought for declaring the loan facility and mortgage as null is not within DRT's jurisdiction under SARFAESI Act but permissible under Specific Relief Act. The lower courts erred in considering documents contrary to pleadings. The petitioner cannot be denied remedy against secured creditors' actions. Consequently, the High Court quashed the lower court orders, restoring the plaint to the Commercial Court for adjudication in accordance with law.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4790
Join Channel
TaxTMI 
