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Section 35: The provisions of this Act to override other laws

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 • Official Statutory Text & Practice Guide

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Competent Court / Tribunal
Act 2002
Section 34 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 36

Legal Commentary & Landmark Judgments: Section 35

Section 35 establishes the overriding statutory effect of the SARFAESI Act over any inconsistent provisions contained in any other law for the time being in force.

  • Core Legal Standard: Section 35 contains an absolute non-obstante clause providing that the provisions of the SARFAESI Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.
  • Statutory Relief & Application: It is qualified only by Section 37, which preserves the application of other laws like RDDBFI, Companies Act, and SEBI to the extent they are not inconsistent.
Key Landmark Precedents:
  • Mathew Varghese v. M. Amritha Kumar (2014) 5 SCC 610: Held that Section 35 gives SARFAESI overriding effect, but procedural rules governing 30-day auction notice under the Security Interest Enforcement Rules are mandatory and protect the borrower's constitutional right to property under Article 300A.
  • Pegasus Assets Reconstruction P. Ltd. v. Haryana Concast Ltd. (2016) 4 SCC 47: Held that SARFAESI Act overrides the winding-up provisions of the Companies Act, 1956; a secured creditor can sell secured assets without seeking the permission of the Company Court or Official Liquidator.
Legal Commentary:

Section 35 is the legislative shield of SARFAESI. It ensures that local rent-control acts, civil court injunctions, and legacy winding-up proceedings cannot stall expeditious non-judicial asset enforcement.

Section 34 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 36