Judicial Interpretation of SARFAESI Act 2002 in the Direction of Strengthening Creditors Protection Regime in India

Abstract

Before SARFAESI Act 2002 , the Debt Recovery Regime in India was absolutely a Pro-Debtors regime and judicial mechanism was also not at par with global standards, resulting in piling of NPA.s. Therefore SARFAESI act 2002 was enacted with the desired objective of reducing NPAs. Initially, there was opposition to the Act through challenge proceedings filed in DRTs to writ petitions filed in High Courts. The Judicial pronouncements which unearth the sentential legis and strengthen the Creditors Protection regime are worth recapitulation.