In Brief
A bank (Kotak Mahindra) sought possession of mortgaged properties from a defaulting borrower under the SARFAESI Act. A creditor holding an award under the MSMED Act claimed priority. The High Court Division Bench held MSMED Act prevailed as the later law. The Supreme Court reversed this, holding that Section 26E of SARFAESI Act (inserted 2016) expressly grants secured creditors priority over all other debts. The MSMED Act provides only adjudication, not priority. When two laws have competing non-obstante clauses, the later one prevails. SARFAESI Act's 2016 amendment thus takes precedence. The Court restored possession rights to the secured creditor.
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