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K. VINOD CHANDRAN, PARTHA SARTHY
Amita Verma – Appellant
Versus
Authorized Officer, Indian Bank, Patna – Respondent
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002—Section 17—Sale of secured asset—Any person aggrieved could take up the matter before D.R.T. insofar as a proceeding under SARFAESI Act is concerned—Proprietor of firm had interest in property after death of his father—When proceedings under SARFAESI Act is taken, borrower and mortgagor are both parties interested in proceedings—Merely because mortgagor has not been impleaded, it does not follow that borrower cannot file an application under Section 17—Borrower, son of mortgagor, who died even before security proceedings were initiated, had interest in property along with other legal heirs of deceased mortgagor—LPA dismissed. (Paras 4, 5 and 7)
Cases Referred:
Rahmatullah vs. Authorized Officer-cum-Chief Manager, Central Bank of India, C.W.J.C. No.17999 of 2017; United Bank of India vs. Satyawati Tondon, (2010) 8 SCC 110—Relied.
K. Vinod Chandran, CJ.—Two writ petitions were disposed of by a common order. The appellant challenged the order passed in the writ petition filed by her. The bank, which was the petitioner in the other case, has not filed an appeal.
Petitioner lacks legal standing to challenge SARFAESI proceedings, being neither property owner nor loan guarantor.
A third party who is aggrieved by actions taken by a secured creditor under the SARFAESI Act has the locus standi to file an application under S. 17 before the Debts Recovery Tribunal, provided they ....
The main legal point established in the judgment is that any person affected by the action taken under Section 13(4) or Section 14 of the SARFAESI Act, 2002, including third parties such as guarantor....
The SARFAESI Act provides for the enforcement of security interest by secured creditors and the availability of alternative statutory remedies, emphasizing the non-maintainability of writ petitions a....
The proceedings initiated against the original borrower for enforcement of security interest stand concluded by virtue of intimation served upon them, and the death of the original borrower occurring....
Legal heirs may seek redress in Securitisation Applications under SARFAESI Act, but cannot maintain parallel proceedings in High Court.
Point of Law : SARFAESI Act- Recovery of Debt – Jurisdiction of Civil Court – DRT has exclusive jurisdiction – jurisdiction of the Civil Court to decide all the matters of civil nature, excluding tho....
The SARFAESI Act provisions, including the enforcement of security interest, the rights of the borrower, the appeal process, and the non-maintainability of writ petitions against private financial in....
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