BALANCING OF INTERESTS OF BOTH CREDITORS AND DEBTORS - CRITICALANALYSIS OF JUDICIAL INTERPRETATION OF SARFAESI ACT 2002

As a coin has two sides, a statutory provision / a rule is also capable of having more than one meaning and to ascertain the intended meaning of legislature is the province of sovereign courts. The statement of objects and reasons of SARFAESI Act 2002 throws ample light on intention of the legislature to legally empower the creditor in terms of enforcement of security interest. However any action – legislative or administrative, must live up to the standard of reasonableness and balance the conflicting interest. SARFAESI Act 2002 when enacted was perceived as draconian by the debtors and was also branded as absolutely Pro-creditor, therefore it becomes pertinent to examine whether the judicial pronouncements have an absolute Pro-Creditor interpretation or they have also protected the legal rights of borrowers.