In Brief
The Supreme Court held that the Securitisation and Reconstruction of Financial Assets Act, 2002 (SARFAESI Act) prevails over Section 187 of the Tripura Land Revenue and Land Reforms Act, 1960. The Tripura Act restricted sale of mortgaged properties to scheduled tribe members only, but the central banking statute permits unrestricted sale. Although the Tripura Act is constitutionally protected via the Ninth Schedule, this protection bars only Part III (fundamental rights) challenges, not override by central legislation. Since banking is the Union's exclusive domain and the state law encroaches into it, federal supremacy applies. The court affirmed the bank's auction sale and rejected arguments that valuation reports were missing, finding the bank had complied with procedural requirements.
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