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akshay (Director)     08 February 2010

Urgent Help: sarfaesi act co-operative bank

Respected Members,

Can u provide me any website or link Where I can Get a copy of the Order of Supreme Court or High Court which states that Sarfaesi Act is applicable to co-operative bank or not?

i.e. can co-operative banks use Sarfaesi Act  for the recovery of their debts of loan amount?

Whether the answer is yes or no...Please provide me the copy...

Thanks...

 



Learning

 16 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     08 February 2010

In exercise of its powers conferred under Section 2(1)(c)(v), the
Central Government issued a notification dated 28-1-2003, which reads as under:

NOTIFICATION UNDER SECTION 2(1)(c)(v):

NOTIFICATION No. SO 105(E), DATED 28-1-2003 In exercise of the powers
conferred under item (v) of Clause (c) of Sub-section (1) of Section 2 of the
Securitisation and Reconstruction of Financial Asset and Enforcement of Security
Interest Act, 2002 (54 of 2002), the Central Government hereby specifies "Co-
operative Bank" as defined in Clause (cci) of Section 5 of Banking Regulation
Act, 1949 (10 of 1949) as 'bank' for the purpose of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002 (54 of 2002).

Also amendment to the Banking Regulation Act has also done after which Sec 56 of the Banking Re. Act reads as :
APPLICATION OF THE ACT TO CO-OPERATIVE BANKS

56. Act to apply to co-operative societies subject to modifications. - The provisions of this Act, as in force for the time being, shall apply to, or in relation to, co-operative societies as they apply to, or in relation to, banking companies subject to the following modifications, namely : (c) in Section 5, -
i) after Clause (cc), the following clauses shall be inserted, namely:
"(cci) 'Co-operative Bank' means a State Co-operative Bank, a Central Co-
operative Bank and a Primary Co-operative Bank;

also in the judgment of the Greater Bombay
Cooperative Bank Ltd. v. United Yarn Tex. Pvt. Ltd. and Ors. 2007 AIR SCW 232 the Apex court has also ruled that SARFAESi shall apply to the co-operative banks.

1 Like

TVD Rajkumar (Advocate)     10 February 2010

you should find the decision Greater Bombay
Cooperative Bank Ltd. v. United Yarn Tex. Pvt. Ltd. and Ors at...

https://judis.nic.in/supremecourt/chejudis.asp

1 Like

akshay (Director)     10 February 2010

 Thanks 

Mr. Rajkumar for providing me the link that i needed urgently....

I Got the ans to my question over there...

Sir,

 Can i know any website link where all laws of Supreme Court are written...

Reply...@

akshayweb@gmail.com

Gundlapallis (Advocate)     11 February 2010

Indiankanoon.com - Check this link for all cases.

1 Like

Vijyant Nigam (09807349001) (Advocate)     21 September 2011

its "indiankanoon.org".

Radhakrishnan K.V. (Joint Registrar of co-operative societies (Rtd.))     23 June 2013

Is it correct to state that judgment of the Greater Bombay Cooperative Bank Ltd. v. United Yarn Tex. Pvt. Ltd. and Ors. 2007 AIR SCW 232 the Apex court has also ruled that SARFAESi shall apply to the co-operative banks. As per judgment: "Therefore, the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 [RDB Act] by invoking the Doctrine of Incorporation are not applicable to the recovery of dues by the co-operatives from their members."

Jimmy Fernandes (Advocate)     22 March 2014

Whether Co-operative Bank can proceed with the Section 14 of SARFAESI ACT????

TVD Rajkumar (Advocate)     22 March 2014

yes...Co-operative Bank can

1 Like

Vijyant Nigam (09807349001) (Advocate)     22 March 2014

Of course they can...

1 Like

Radhakrishnan K.V. (Joint Registrar of co-operative societies (Rtd.))     30 March 2014

No. "Co-operative banks"  other than Multi State Co-operative Banks cannot proceed with the provisions of SARFAESI Act. Why?

"Co-operative banks" established under the Maharashtra Co-operative Societies Act, 1960 [MCS Act, 1960]; the Andhra Pradesh Co-operative Societies Act, 1964 [APCS Act, 1964]; and the Multi-State Co-operative Societies Act, 2002 [MSCS Act, 2002] transacting the business of banking, do not fall within the meaning of"banking company" as defined in Section 5 (c) of the Banking Regulation Act, 1949 [BR Act]. Therefore, the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 [RDB Act] by invoking the Doctrine of Incorporation are not applicable to the recovery of dues by the co-operatives from their members." observes Supreme Court  in Greater Bombay Cooperative Bank Ltd. v. United Yarn Tex. Pvt. Ltd. and Ors. 2007 AIR SCW 232.
RDB Act and SARFAESI Act were amended in 2013 to make these laws applicable to Multi State Co-operative banks.
SC judgment and GO attached

Attached File : 1006333110 greater bombay co-op. bank ltd vs m s united yarn tex. pvt. ltd. & ors on 4 april, 2007.pdf, 1006333110 sarfaesi amen act.pdf downloaded: 275 times

Radhakrishnan K.V. (Joint Registrar of co-operative societies (Rtd.))     30 March 2014

 

for SC judgment - https://indiankanoon.org/doc/1516582/

Radhakrishnan K.V. (Joint Registrar of co-operative societies (Rtd.))     30 March 2014

Karnataka HC has also observed that SARFAESI Act is not applicable in the case of "Co-operative Banks". But Kerala HC has a different view.

aman (manager)     06 October 2014

Hello,

please confirm status as per present scenario and if possible, do give link reference for judgement supporting the same.

mainly for primary co-operative banks

regards

Radhakrishnan K.V. (Joint Registrar of co-operative societies (Rtd.))     06 October 2014

Co-operative Banks other than Multi State Co-op. Banks cannot invoke provisions of SARFAESI Act.

Gujarat HC has quashed notification of Central Government in the case ADMINISTRATOR - SHRI DHAKDI GROUP CO OPERATIVE COTTON SEED & ORS.Versus UNION OF INDIA & ORS.

https://indiankanoon.org/doc/97560712/


Attached File : 117980243 administrator - shri dhakdi group ... vs mr on 22 april, 2013.pdf downloaded: 150 times
1 Like

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