Supreme Court Rules MPID Act Supersedes SARFAESI, RDB Act & IBC in Financial Recovery

The Supreme Court ruled that the Maharashtra Protection of Interest of Depositors (MPID) Act overrides central financial recovery statutes such as SARFAESI, the RDB Act, and the IBC.

The court held that these laws operate in distinct legislative fields, so the doctrine of repugnancy under Article 254 does not apply.

The Court also upheld the execution committee constituted under Article 142 of the Constitution to enable the speedy and coordinated recovery of dues payable to over 13,000 investors.

The dispute arose from the Rs 5,600 crore default at the National Spot Exchange (NSEL), a commodity exchange promoted by 63moons technologies.

The matter will proceed before the committee for further recovery; the next hearing is on July 12.