SECURITISATION ACT GETS PRIMACY
The Bombay high court has dismissed the petition of Nouveaw Exports Ltd. Against the ruling of the
Appellate Authority for Industrial and Financial Reconstruction which allowed the auction and sale
of assets of a sick company by the sole creditor bank. The creditor bank invoked the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act to sell the property. The company argued that since the revival of the unit under the Sick Industries Act was pending, the bank could not have sold the property. The high court rejected this contention and gave primacy to the Secularization Act.
Appellate Authority for Industrial and Financial Reconstruction which allowed the auction and sale
of assets of a sick company by the sole creditor bank. The creditor bank invoked the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act to sell the property. The company argued that since the revival of the unit under the Sick Industries Act was pending, the bank could not have sold the property. The high court rejected this contention and gave primacy to the Secularization Act.
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