M/S. New Horizon Sugar Mills vs Gov.Of Pondicherry Tr.Addl.Sec

The Supreme Court addressed the legality of G.O.Ms.No.12 issued under the Pondicherry Protection of Interests of Depositors in Financial Establishments Act, 2004, which ordered the attachment of properties of Pondicherry Nidhi Ltd. The Court held that the provisions of the SARFAESI Act, particularly Section 13(2), allow banks to take possession of secured assets upon default, and that the attachment order did not infringe upon the rights of the bank to recover dues. The appeals were dismissed, affirming the High Court's decision and the validity of the G.O.