Bombay Mercantile Cooperative Bank Ltd ... vs M/S U.P Gun House

The Supreme Court upheld the actions of the Bombay Mercantile Cooperative Bank Ltd. under Section 13(2) and Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), confirming the bank's right to take possession of the mortgaged property due to the borrower's failure to repay the loan. The Court found that the One Time Settlement (OTS) agreement was revoked due to non-payment by the respondent, leading to the bank's lawful possession of the property. The appeal was dismissed, affirming the bank's actions as valid under the SARFAESI Act.