MIS. BHARAT STEEL TUBES LTD. ETC. versus IFCI LTD. & ORS.

MIS. BHARAT STEEL TUBES LTD. ETC. versus IFCI LTD. & ORS.

IFCI Ltd. remains a public financial institution under Section 4A(1)(ii) Companies Act, 1956, irrespective of the Central Government's shareholding, and is entitled to invoke SARFAESI Act provisions to enforce security interests. The conversion and disinvestment did not affect its status—special leave petitions dismissed.

Parties
Petitioner: Bharat Steel Tubes Ltd. etc.; Respondent: IFCI Ltd. & Ors.
Jurisdiction
India
Judgment Date
04 April 2011
Procedural Posture
Special Leave Petition (civil) / Final Disposition by Supreme Court
Outcome
Special Leave Petitions dismissed
Legal Topics
Public Financial Institutions Under Companies Act, SARFAESI Act Applicability, Transfer of Undertaking Under IFCI (repeal) Act
Corporate Law Banking and Finance Law Public Financial Institutions Under Companies Act SARFAESI Act Applicability Transfer of Undertaking Under IFCI (repeal) Act

Case Brief

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Parties

Bharat Steel Tubes Ltd. etc.

Petitioner

IFCI Ltd. & Ors.

Respondent

Procedural Posture

Special Leave Petition (civil) / Final Disposition by Supreme Court

Legal Issues

  1. 1 Whether IFCI Ltd. continues to be a public financial institution for purposes of Companies Act, 1956 and SARFAESI Act, 2002 after its conversion into a company and change in shareholding
  2. 2 Applicability of SARFAESI Act provisions to IFCI Ltd. for enforcing security interests

Ratio Decidendi

IFCI Ltd. remains a public financial institution under Section 4A(1)(ii) Companies Act, 1956, irrespective of the Central Government's shareholding, and is entitled to invoke SARFAESI Act provisions to enforce security interests. The conversion and disinvestment did not affect its status—special leave petitions dismissed.

Court Disposition

Special Leave Petitions dismissed

Orders

  • No order as to costs