M.R. UTENSILS Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD Mr. Mukul Sinha, learned counsel appearing for the petitioners, at length and in detail.

(2.) BY means of the instant petition under Article 226 of the Constitution of India, the petitioners pray that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Second) Ordinance, 2002, herein called the 'Ordinance', be declared ultra vires and unconstitutional.

(3.) SECTION 13 of the Ordinance provides that notwithstanding anything contained in Section 69 or Section 69A of the Transfer of Property Act, 1882 (4 of 1882), any security interest created in favour of any secured creditor may be enforced, without the intervention of court or Tribunal, by such creditor in accordance with the provisions of the Ordinance. Sub -section (2) of Section 13 of the Ordinance contemplates that action by the secured creditor against the borrower may be initiated by a notice in writing calling him to discharge in full his liabilities within sixty days from the date of notice, failing which the secured creditor has been empowered to exercise all or any of the rights under Sub -section (4) of Section 13 of the Ordinance.