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2015 (9) TMI 1665 - GUJARAT HIGH COURTVires of Section 2(1)(c)(iva) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Section 2(d)(vi) of the Recovery of Debts due to the Banks and Financial Institution Act, 1993 - action taken under the Securitisation Act prior to the amendment under Securitisation Act - initiation of fresh action under Section 13 of the Securitisation Act. HELD THAT:- In the present case, action was initiated in any case, admittedly, prior to January, 2013 and therefore when the amending Act was not in force, action of the respondent Bank under the Securitisation Act at the given point of time cannot be maintained. However in any case, amending Act has come into force and the remedy under the Securitisation Act is available to the respondent Bank. Respondent Bank if desirous, may initiate action by issuing fresh Notice under Section 13 of the Securitisation Act in accordance with law. The action taken by the respondent No.2 Bank under the Securitisation Act prior to the amending Act, i.e. January, 2013 is held to be bad in law. Consequentially, property in question, possession of which is taken over, will be required to be reentrusted by respondent Bank to the petitioner by drawing appropriate Panchnama, with further condition that it would be open to the respondent Bank to deploy security for guarding of the property and there will be further prohibitory injunction against the petitioner not to transfer or alienate the possession, title or rights in the property in any manner whatsoever for a period of four months from the date of re-entrustment of the property by the respondent Bank to the respective petitioners. As the action taken by the Bank under the Securitisation Act prior to January, 2013 is not held to be legal and valid and is declared illegal, consequential action as that of authorisation or order passed under Section 14 of the Securitisation Act would also no more survive - Petition disposed off.
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