Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 2011 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 1203 - SUPREME COURTSpecial Leave Petitions - Special Leave Petitions, has challenged the judgment and order, passed by High, holding that the Respondent, Industrial Finance Corporation of India Limited is a "financial institution" under section 4A(2) of the Companies Act, 1956, read with section 2(1)(m) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (‘the SARFAESI Act’) and that, as a consequence, the Respondent IFCI Ltd. would be entitled to take recourse to the provisions of the SARFAESI Act in order to enforce a "security interest" which had accrued in its favour – counsel submitted that since the Respondent No. 1 Company no longer fulfilled the criteria contained in clause (ii) of the proviso to sub- section (2) of section 4A of the Companies Act, 1956, it had lost the status given to it under clause (ii) of sub-section (1) of section 4A thereof and was not, therefore, entitled to invoke the provisions of the SARFAESI Act, 2002, notwithstanding the provisions of section 5 of the 1993 Act – Held that:- clauses (i) and (ii) are not conjunctive but disjunctive and even though clause (ii) may not have any application to the Respondent No. 1 Company, it was covered by clause (i), since it was constituted under the Companies Act, 1956, which is a Central Act. no reason to interfere with the judgment and orders of the High Court impugned in these Special Leave Petitions, which are, accordingly, dismissed
|