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ARTICLE · 22 SEPTEMBER 2022

Can SARFAESI Proceedings Be Continued When CIRP Has Been Admitted?

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The Hon'ble Supreme Court vide its order dated May 18, 2022 in Indian Overseas Bank Versus M/S Rcm Infrastructure Ltd. And Another observed that the proceedings under the...

IndiaInsolvency/Bankruptcy/Re-Structuring

The Hon'ble Supreme Court vide its order dated May 18, 2022 in Indian Overseas Bank Versus M/S Rcm Infrastructure Ltd. And Another1 observed that the proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) cannot be continued once the Corporate Insolvency Resolution Process (CIRP) has been initiated and moratorium is ordered under the Insolvency and Bankruptcy Code, 2016. The Apex Court further observed that in such a situation, any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property, including any action under the SARFAESI Act, 2002 is prohibited.

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