Indiabulls Housing Finance Limited v. Deccan Chronicle Holdings Ltd. & Ors. (2018)14 SCC 783

The Respondent borrowers had committed default in repaying the loans advanced even before the merger; loan recall notice was also issued. Subsequently, the loan accounts of the Respondents and were classified as non-performing assets (NPA). A notice was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act of 2002 taking possession over the mortgaged properties. The Appellant issued an auction notice and the matter was adjudicated wherein the High Court quashed the actions of the Appellants for recovery of loan amount holding that the Respondents had not borrowed any amount from the Appellant. The loan was taken from IBFSL, which was not under the purview of SARFAESI Act. Therefore, at the time of taking the loan, the transaction which was outside the purview of the SARFAESI Act, could not be brought under its purview without the consent of the borrower. Hence, present appeal was filed.