Multiple choice

In Mardia Chemicals vs Union of India and others case, the Supreme Court had decided that

  1. SARFAESI Act is fully invalid

  2. condition of deposit of 75% amount by borrower before approaching DRT against possession notice by banks, is invalid

  3. condition of deposit of 75% amount by borrower before approaching DRAT, against decision of DRT, is invalid

  4. condition of 60 days notice before possession is correct
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When the SARFAESI Act was challenged, the Supreme Court in Mardia Chemicals Ltd. v. Union of India, (2004) 4 SCC 311 had upheld the validity of the SARFAESI Act, except Section 17(2) of the SARFAESI Act which required depositing 75% of the amount claimed before entertaining an appeal under Section 17 of the SARFAESI Act.

Keep practicing — related questions