In Brief
Indiabulls Housing Finance appealed against a High Court judgment that quashed SARFAESI Act enforcement proceedings initiated against Deccan Chronicle Holdings. The High Court had held that since IBFSL (the original lender) was not a SARFAESI-notified financial institution when disbursing the loans, its successor (Indiabulls after merger) could not invoke SARFAESI. The Supreme Court allowed the appeal, holding that SARFAESI Act has retroactive application to all debts existing when it becomes applicable to a secured creditor, regardless of the original lender's status. Upon statutory amalgamation, all assets and liabilities automatically vest in the amalgamated company. The Court also rejected the argument that prior arbitration proceedings bar SARFAESI enforcement, as special statutes take precedence over general remedies.
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