State Bank Of India vs Santosh Gupta And Anr. Etc

The Supreme Court held that the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) are applicable to the State of Jammu & Kashmir, despite the High Court's ruling that they conflicted with Section 140 of the Transfer of Property Act of Jammu & Kashmir, 1920. The Court emphasized that SARFAESI allows banks to enforce security interests without court intervention, thereby establishing the supremacy of central legislation in this context. The judgment reversed the High Court's decision, affirming the legislative competence of Parliament in enacting SARFAESI.