Reinitiation Of SARFAESI Action By Bank Not An 'Exceptional Circumstance' To Avoid Forfeiture Under Rule 9(5) Of 2002 Rules: Allahabad High Court

In a significant ruling, the Allahabad High Court has held that the reinitiation of sale proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) by the bank does not qualify as an “exceptional circumstance” to avoid the statutory forfeiture of the deposit amount under Rule 9(5) of the Security Interest (Enforcement) Rules, 2002. The case was heard by Justice Shekhar B.…