Proceedings under SARFAESI Act cannot be continued once CIRP has been initiated: Supreme Court

The legislative intent is clear that after the CIRP is initiated, all actions including any action under the SARFAESI Act to foreclose, recover or enforce any security interest are prohibited, the Court held.
Supreme Court and IBC
Supreme Court and IBC

The Supreme Court ruled on Wednesday that proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) cannot continue once the Corporate Insolvency Resolution Process (CIRP) is initiated [Indian Overseas Bank v. M/s RCM Infrastructure Limited and Another].

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