UNITED METACHEM INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) BY filing this Special Civil Application, the petitioners have prayed for declaring section 2(1)(o) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Securitisation Act, hereafter as ultra vires the Constitution of India. The petitioners have also prayed for declaring paragraph 2.1 of the RBI guidelines known as Income Recognition and Prudential Norms as ultra vires the Constitution of India and the Securitisation Act.

(2.) BY our common CAV judgment dated 24th April 2014 passed in Special Civil Application No. 14908 of 2012 and analogous matters, we have disposed of 79 writ -applications raising similar challenge by partly allowing the writ -applications by holding that paragraph 2.1 of the RBI Guidelines is intra vires Article 14 of the Constitution of India and, at the same time, holding that the amended provisions of section 2(1)(o) of the Securitisation Act are ultra vires the Article 14 of the Constitution and the object of the Securitisation Act itself and consequently, we restored the provisions which existed earlier, i.e. prior to the amendment of 2004 and existed at the time of decision of the Supreme Court in the case of Mardia Chemicals Ltd. v. Union of India, 2004 AIR(SC) 2371

(3.) WE make it clear that we have restricted our scrutiny only to the aforesaid two questions and we have not gone into the other questions involved in this writ -application.