- (1.) BASIC FACTS Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI Act) 2002 is a much dreaded Act.
(2.) Under it the bank or a financial institution has enormous powers to sell the assets of a defaulting borrower and realise their debt without recourse to a court of law. Such a borrower happened to be Uniworth Apparel Limited, the third defendant. The bank or financial institution was I.C.I.C.I. Bank Ltd.
(3.) Now, this Act empowers such a lender to transfer or assign their rights in, the property of the borrower, mortgaged or pledged with them or given to them otherwise as security for the loan, in favour of purchasers. I.C.I.C.I. Bank Ltd. had such a right over the properties mentioned in Schedule I to Annexure A' of the plaint, belonging to the third defendant. The properties included immovable properties at plot no. A/606, TTC Industrial Area, MIDC, New Mumbai, Maharashtra. It appears that this bank had the right to sell those properties. I.C.I.C.I. Bank Ltd. assigned their rights in the above property in favour of the first defendant. ;