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Arunbhai Kalyanbhai Sutariya v. Nutan Nagrik Sahakari Bank Ltd. & Anr.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 2822 of 2015)Decided 10 Mar 2015
Civil Appeal No. 2822 of 2015
Justice Anil R. Dave · Justice Kurian Joseph

Background

This order does not decide the main case. The dispute concerns recovery by a cooperative bank and whether the SARFAESI Act, 2002 or the Multi-State Cooperative Societies Act, 2002 applies. The appellant had an appeal pending before the Debts Recovery Tribunal, Ahmedabad, and the bank had an appeal pending before the Gujarat State Cooperative Tribunal against a related order.

Decision Breakdown

This is not a final decision on the main case. On 10 March 2015 the Court said it would not entertain the appeal on merits. It directed both pending appeals to be decided within three months and ordered that no coercive recovery steps be taken under the SARFAESI Act in the meantime. It expressly kept open the question of law on the applicability of the two Acts.

Lesson Learnt

There is no final ruling yet on whether the SARFAESI Act or the Multi-State Cooperative Societies Act governs this recovery. The only operative direction is interim protection against coercive recovery until the tribunals decide.

Official source (sci.gov.in)View Judgment (PDF)

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