Multiple choice

SARFAESI Act has been declared valid by Supreme Court but it struck down Section ______ of the Act in the case of ______ vs ______, which provided for deposit of 75% of the amount due to the bank before approaching DRT.

  1. 13, Mardia Chemicals, ICICI Bank Ltd

  2. 17(2), Mardia Chemicals, Union of India and others

  3. 13, Mardia Chemicals, Union of India and others

  4. 17, Mardia Chemicals, Union Bank of India
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In that case, the Supreme Court was dealing with the validity of the SARFAESI Act. The Court struck down Section 17(2) of the Act as ultra vires Article 14 of the Constitution of India. Thus, the complete statement is SARFAESI Act has been declared valid by Supreme Court but it struck down Section 17(2) of the Act, in the case of Mardia Chemicals vs Union of India and others, which provided for deposit of 75% of the amount due to the bank before approaching DRT.

Keep practicing — related questions