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Whether SARFAESI measures could be invoked against a borrower in Nagaland and in the absence of any mortgage/security interest was determined by holding that the Act's overriding clause in s.35 cannot prevail over the special constitutional protection under Art. 371A, and that SARFAESI enforcement presupposes creation of a security interest, which was undisputedly absent. Given the loan agreement pre-dated SARFAESI's commencement, invocation required heightened scrutiny, and the creditor's action was held without jurisdiction; consequently, the borrower could not be relegated to the DRT remedy under s.17. The writ interference was upheld and the appeal was dismissed - SC
Whether SARFAESI measures could be invoked against a borrower in Nagaland and in the absence of any mortgage/security interest was determined by holding that the Act's overriding clause in s.35 cannot prevail over the special constitutional protection under Art. 371A, and that SARFAESI enforcement presupposes creation of a security interest, which was undisputedly absent. Given the loan agreement pre-dated SARFAESI's commencement, invocation required heightened scrutiny, and the creditor's action was held without jurisdiction; consequently, the borrower could not be relegated to the DRT remedy under s.17. The writ interference was upheld and the appeal was dismissed - SC
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