KHAJA INDUSTRIES Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The petitioners have challenged the action of the respondent banks under the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "the Securitisation Act") on merits, the applicability of the said Act to co-operative banks including those constituted under the Maharashtra Cooperative Societies Act (hereinafter referred to as the MCS Act) and the constitutional validity of the said Act.

(2.) There is little, if anything, to be said in favour of the petitioners on merits. They are debtors of the respondent co-operative banks and, prima-facie atleast, there appears to be no defence to the claim of the respondent banks on merits. The petitioners have however challenged the Constitutional validity of the Securitisation Act. In Mardia Chemicals Ltd. and Ors. v. Union of India and Ors., 2004 2 MhLJ 1090 the Supreme Court upheld the constitutional validity of the Securitisation Act including the very provisions which were challenged before us. The petitioners however contended that the judgment is per incuriam, having failed to notice the relevant provisions of the Constitution of India.

(3.) We have decided all the petitions by this common judgment though in some of them the constitutional validity of the Securitisation Act has not expressly been challenged as, a decision on that aspect in one petition would affect the outcome of the other petitions in any case.