Lawstreet Journal

Supreme Court announces verdict in favour of cooperative banking sector in the matter of the Securitization Act

Lawstreet Journal 8 May 2020 4:39am

Image courtesy: Lawstreet Journal Judiciary Supreme Court announces verdict in favour of cooperative banking sector in the matter of the Securitization Act

As soon as the Supreme Court declared the decision in favour of the cooperative banking sector, matter of the Securitization Act, those associated with urban cooperative banks were seen rejoicing while greeting each other with joy. 

Agreeing to the decision of the summit court, the cooperative bank cluster referred to it as a landmark judgement.  The verdict is considered of significant importance for the general health of UCB’s, and especially those which are not multi-state.

With the favourable judgement, UCBs can now fight for recovery in addition to the provisions available under respective state laws.

UCB officials opine: 

Kalyan Janata Sahakari Bank Chief A N Khirwadkar

This is one of the most awaited decisions for the Cooperative banking sector. The clarity on the definition of Banking now includes cooperative Banks. This was a much-needed relief for UCBs which were not multi state. Now all the UCBs have got an extra weapon for recovery apart from the legal provisions under respective state laws. The justice has been delayed but has not been denied.

Model Community Bank, Chief, William Dsouza 

This is a great judgment for Co-op Banks. Earlier defaulters used to take shelter under Gujarat High Court judgment that Securitization is not applicable to Co-op Banks and delay the process of Securitization. This will stop with immediate effect and will help the co-op Banks to reduce their NPAs by quick action under Securitization to auction mortgaged properties of the defaulters. This is a great judgment by the Supreme Court in spite of the Lockdown due to Covid 19… Continue Reading...

Tagged: Sarfaesi Act  
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