EXCEL DEALCOMM PRIVATE LIMITED Vs. ASSET RECONSTRUCTION COMPANY

JUDGEMENT

(1.) BASIC FACTS

(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.