Tag: state vs central laws

Supreme Court Says Depositors First, Banks Later in NSEL Scam Case: MPID Act Overrides SARFAESI
24May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Says Depositors First, Banks Later in NSEL Scam Case: MPID Act Overrides SARFAESI

The Supreme Court ruled that the Maharashtra Protection of Investors and Depositors (MPID) Act 1999 prevails over the SARFAESI Act, 2002 and Recovery of Debts Act 1993, denying secured creditors priority over assets attached under MPID. It also held that properties attached under MPID remain outside IBC moratorium, ensuring depositor claims take precedence over insolvency proceedings. The judgment reaffirms state legislative competence under List-II (State List) and upholds federalism by preventing central laws from overriding state-enacted investor protection measures. Facts Of The Case: The case arose from the 2013 National Spot Exchange Limited (NSEL) scam, where around 13,000 investors lost approximately ₹5,600 crores due to payment defaults by trading members. NSEL, a commodit...
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Supreme Court Clarifies: When Can an Arbitral Award Be Challenged for Lack of Jurisdiction?
22May By The Legal ChamberNo Comments
Supreme Court

Supreme Court Clarifies: When Can an Arbitral Award Be Challenged for Lack of Jurisdiction?

The Supreme Court ruled that an arbitral award under the Arbitration and Conciliation Act 1996, cannot be annulled solely for lack of jurisdiction if no plea was raised before the tribunal under Section 16(2). It harmonized conflicting precedents, holding that objections under Section 34 must show strong grounds, and upheld the finality of awards where jurisdictional challenges were untimely. The judgment clarifies that the Madhya Pradesh Arbitration Act 1983, does not automatically override arbitration agreements unless jurisdictional objections are raised at the appropriate stage. Facts Of The Case: The case involved a contractual dispute between M/s Gayatri Projects Limited and Madhya Pradesh Road Development Corporation regarding road construction works in Madhya Pradesh. The parties...
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