Imagine a legal tug-of-war, with the SARFAESI Act on one side and other laws on the other. Section 35 cuts through the tension with a decisive declaration: when it comes to debt recovery under the SARFAESI Act, its rules trump all others.
Think of it as a special clause within the legal rulebook, stating in bold letters: "SARFAESI takes precedence." Any conflicting provisions found in existing laws or legal instruments simply lose their grip when dealing with matters governed by this crucial debt recovery framework.
while section 35 stipulates that provisions of the SARFAESI Act shall have an overriding impact notwithstanding something inconsistent contained in “every other law”, which the court interpreted to mean “every other regulation operating inside the equal area”
But why this emphasis on the SARFAESI Act's supremacy? There are several key reasons:
- Efficiency and clarity: The Act lays out a specific set of rules and procedures for handling debt recovery cases. This provides a well-defined roadmap for lenders, borrowers, and authorities, streamlining the process and preventing confusion arising from conflicting legal provisions.
- Specialized expertise: The SARFAESI Act establishes dedicated institutions like debt recovery Tribunals specifically equipped to handle debt recovery issues. Granting them primacy ensures their expertise is fully utilized without getting tangled in the complexities of other legal frameworks.
- System stability: A consistent and streamlined approach to debt recovery under the SARFAESI Act fosters predictability and stability within the financial system. This benefits everyone involved, from lenders who need to recover their dues to borrowers seeking fair solutions.
However, this supremacy isn't absolute. Two important caveats exist:
- Fundamental rights remain sacrosanct: Even under the SARFAESI Act's reign, no one's fundamental rights guaranteed by the Constitution can be compromised. If any action taken under the Act infringes on these rights, the general legal system can still be invoked for redressal.
- Concurrent application possible: In some cases, specific provisions of other laws might not directly conflict with the SARFAESI Act but can still be relevant to the situation. In such cases, both sets of rules might apply simultaneously, depending on the specific circumstances.
In essence, Section 35 establishes the SARFAESI Act as the go-to legal framework for debt recovery matters within its scope. It prioritizes efficiency, clarity, and system stability while ensuring that fundamental rights remain protected and that other relevant laws can still play a role when necessary. This clear hierarchy of legal authority ultimately aims to facilitate smooth and effective debt recovery while safeguarding individual rights within the financial system
