Date:08/01/2003 URL: http://www.thehindu.com/2003/01/08/stories/2003010805541300.htm

National

SC to hear petitions on securitisation Act

By Our Legal Correspondent

NEW DELHI Jan. 7 . The Supreme Court today transferred to itself a batch of petitions from Bombay and Rajasthan High Courts challenging the validity of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. A Bench comprising Justice R.C. Lahoti, Justice Ashok Bhan and Justice A.R. Lakshmanan issued the order on petitions filed by the State Bank of India and the Centre.

It directed them to be listed along with petitions filed by Mardia Chemicals and others challenging the legislation even at the stage of the ordinance.

The apex court had earlier made it clear that the secured creditors — the financial institutions — could proceed against the borrowers and take over the units in the wake of their failure to pay the dues; but they shall not dispose of the assets.