NORTH LTD. v. M/S. DOULO
Supreme Court of IndiaW.P.(C) NO. 006492-006492 - 2024Bench: Justice Dipankar Datta, Justice Aravind Kumar
The Supreme Court dismissed NEDFI's appeal against the Gauhati High Court judgment quashing its SARFAESI action, holding that no enforceable security interest was created in its favour under the 2002 Act since the loan agreement of 11-5-2001 predated the statute and contained no mortgage or charge in NEDFI's name; the decisive ground is that the properties were mortgaged only to the Model Village Council which merely guaranteed repayment, and Article 371A barred Parliamentary laws on land transfer in Nagaland unless the Assembly resolved otherwise, a bar lifted only on 10-12-2021 when SARFAESI was notified for the State.