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Secured creditor shall be paid in priority over all other debts, rules HC
The New Indian Express Vellore
|September 11, 2025
THE Madras High Court has permitted the City Union Bank in Nagapattinam district to go ahead with the auction of the secured assets — jewels and immovable properties — of a borrower who had defaulted repayment after availing ₹13 crore from the bank.
The court also ruled that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act prevails over the provisions of the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019 once a security interest (right over secured assets) is created under the former and is registered with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI).
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