Securitization and reconstruction of financial assets-SARFESI Act, 2002.
The case NKGSB Cooperative Bank Ltd. v. Subir Chakravarty involves the interpretation of the term “officer subordinate” in the context of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The court considered various definitions of the term from legal sources and concluded that the term refers to an officer who is subject to the direction and control of a superior officer, and that advocates appointed as court commissioners can be considered officers subordinate to the Chief Metropolitan Magistrate or District Magistrate for the purpose of taking possession of secured assets. The court also explained the procedure for taking possession of secured assets under the Act, which involves obtaining an order from the CMM/DM and then taking possession through an officer subordinate, including an advocate commissioner.
NKGSB COOPERATIVE BANK LIMITED
v.
SUBIR CHAKRAVARTY & ORS.
(Civil Appeal No. 1637 of 2022)
FEBRUARY 25, 2022.
International Arbitration
The court has held that a claim in tort can be covered by an arbitration clause if the claim has a sufficiently close connection with the contract. The court has also discussed the scope of Sections 35 and 46 of the Arbitration Act, 1996 and held that foreign awards are binding on “persons” under Section 46 and not just parties. The court has rejected the argument that foreign awards are not binding on non-signatories and that an enforcing court can only consider the parties to the arbitration agreement. The court has also discussed the application of public policy in recognition proceedings and held that an erroneous legal reasoning or misapplication of law is generally not a violation of public policy. The court has criticized the Division Bench’s approach of applying Delaware law to satisfy itself that the alter ego doctrine was correctly applied and held that such an approach is wholly incorrect.
GEMINI BAY TRANSCRIPTION PVT. LTD.
v.
INTEGRATED SALES SERVICE LTD. & ANR.
(Civil Appeal Nos. 8343-8344 of 2018)
AUGUST 10, 2021