Authority: Supreme Court of India

Order Date: 09-09-2026

Case Overview

  • Petitioner: K. K. Praveen filed Writ Petition (Civil) No. 1091/2026 under Article 32 of the Constitution against JM Financial Asset Reconstruction Company Ltd and other respondents.
  • The petition sought multiple writs of mandamus, including: (a) declaration that the cause of action merged with the decree in O.A. No.439/2014 before the Debt Recovery Tribunal, Ernakulam, invoking the doctrines of transit in rem judicatam and res judicata; (b) declaration that the term “banking” in Entry 45 of List I does not encompass Asset Reconstruction Companies, rendering the SARFAESI Act, 2002 and the Recovery of Debts and Bankruptcy Act, 1993 inapplicable to them; (c) orders directing Federal Bank Ltd and JM Financial ARC to state on oath whether a statutory committee under the MSMED Act notification dated 29.05.2015 had ever been constituted; (d) declaration that respondents are estopped from initiating multiple proceedings under the SARFAESI Act, RDB Act and IBC 2016 for the same cause of action; (e) declaration that the SARFAESI‑related proceedings against the petitioners are unconstitutional, illegal and void; (f) quashing of all notices and orders issued under Sections 13(2), 13(4), 14 of the SARFAESI Act and Section 19 of the RDB Act; and (g) an ad‑interim injunction restraining further enforcement actions.
  • Counsel for the petitioner, Shri Mathews J Nedumpara, argued that the ex‑parte decree in O.A. No.439/2014 was final, that the cause of action had merged with the decree, and that the SARFAESI Act could not be invoked.
  • The Court examined Section 35 of the SARFAESI Act, which provides that its provisions shall have effect notwithstanding any inconsistency with other laws, and held that this overriding clause defeats the petitioner’s contentions.

Final Outcome

  • The Court rejected the petitioner’s arguments, held that Section 35 gives the SARFAESI Act overriding effect, and consequently dismissed the writ petition.
  • The Court ordered that pending applications stand disposed of.
  • The order was recorded by Deputy Registrar Court Master Neetu Sachdeva and Divya Babbar.

Topics: SARFAESI Act, Asset Reconstruction Companies, Constitutional Law