SARFAESI Act Inapplicable in Nagaland Prior to Its Adoption in 2021; Secured Creditor’s Plea Dismissed: Supreme Court

The Supreme Court of India dismissed an appeal filed by a secured creditor seeking to initiate recovery proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 against a borrower in Nagaland. The Court held that the recovery action was legally impermissible because the SARFAESI Act, 2002 was not operational in Nagaland at the time when the proceedings were initiated. The judgment reaffirmed that…