M/S Bharat Steel Tubes Ltd Etc vs Ifci Ltd & Ors

The Supreme Court granted permission to file Special Leave Petitions challenging the Delhi High Court's ruling that the Industrial Finance Corporation of India Limited qualifies as a 'financial institution' under Section 4A(2) of the Companies Act, 1956, and Section 2(1)(m) of the SARFAESI Act, 2002. The Court held that the Corporation's status as a public financial institution is contingent upon the Central Government holding at least 51% of its paid-up share capital, which it no longer does due to disinvestment. Consequently, the Court concluded that the Corporation cannot enforce a 'security interest' under the SARFAESI Act as it is no longer classified as a public financial institution.