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M. S. SONAK, JITENDRA JAIN
Royal Traders – Appellant
Versus
Asset Reconstruction Company of India Ltd. – Respondent
JUDGMENT :
(M.S. Sonak J) :
1. Heard learned counsel for the parties.
2. Rule in each of these petitions. The Rule is made returnable immediately at the request of and with the consent of learned counsel for the parties.
3. Learned counsel for the parties agree that a common judgment and order can dispose of these petitions. In any event, Writ Petition (L) No. 18722 of 2024, the challenge is to the Debts Recovery Appellate Tribunal’s (“DRAT”) order dated 04 June 2024, to the extent this order does not grant the petitioner the waiver under the 3rd proviso to Section 18(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”). In the remaining three petitions, the petitioners challenge the very same order dated 04 June 2024, to the extent the said order does not consider the interest component for determining the debt due. Accordingly, it is only appropriate that a common judgment and order dispose of these petitions.
4. Ms Pinky Anand, learned senior advocate for the petitioner in Writ Petition (L) and 18722 of 2024 (“borrower”) submitted that under the scheme of Section 13(2) of the SARFAESI Act, the invocation of ju
The court upheld the DRAT's order denying waiver of pre-deposit under the SARFAESI Act, emphasizing the need for a prima facie case and clarifying that financial hardship is not determinative.
Point of law: High Court has no jurisdiction to entertain writ petitions under Article 226 of the Constitution of India, relating to matters coming under the purview of SARFAESI Act, 2002, where a st....
Appeal – Requirement of statutory pre-deposit – In a case where borrower challenges auction sale, thereafter it will not be open for borrower to pray to use sale proceeds received from sale of secure....
A writ petition under Article 226 is not maintainable when an effective statutory remedy exists under the Securitisation Act, especially in recovery related matters.
Non-borrowers cannot be subjected to pre-deposit requirements under Section 18 of the SARFAESI Act, confirming strict adherence to statutory definitions.
Pre-deposit under Section 18 of the SARFAESI Act is a mandatory requirement for maintaining an appeal before the Appellate Tribunal, and it cannot be completely waived even in the face of financial h....
When alternative statutory remedies are available, a writ petition under Article 226 is not maintainable, particularly in financial recovery matters under the SARFAESI Act, unless exceptional circums....
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