IMPORTANT POINT
The court established that compliance with statutory provisions is essential in possession proceedings under the Securitisation Act, and alternative remedies must be exhausted before seeking judicial review.

ORDER :

Vaibhavi D. Nanavati, J.

1. Heard learned advocate Mr. Aman Mir for the petitioner.

2. The present petition is filed by the petitioner with the following prayers.

“(a) To admit and allow this petition.

(b) To hold and adjudge that the Debts Recovery Tribunal - II, Ahmedabad, while passing Order dated 25/06/2024 in Securitisation Application No. 343 of 2024 has acted ultra vires the jurisdiction vested in it by directing the Petitioners - Borrowers to enter into a one-time settlement with the Respondent Bank instead of quashing the action of the Respondent Bank of taking physical possession of the secured property in question in stark contravention of Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 read with Rule 8 of the Security Interest (Enforcement) Rules, 2002. Accordingly, quash and set aside the Order dated 25/06/2024 in Securitisation Application No. 343 of 2024.

(c) To quash and set aside all the actions of the Respondent Bank against the Petitioners undertaken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on the ground of being in contravention of Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 read with Rule 8 of the Security Interest (Enforcement) Rules, 2002.

(d) Pending hearing and final disposal of the present petition, this Hon'ble Court be pleased to stay the implementation of the Order dated 25/06/2024 passed by the Debts Recovery Tribunal - II, Ahmedabad in Securitisation Application No. 343 of 2024.

(e) Pending hearing and final disposal of the present petition, this Hon'ble Court be pleased to stay the implementation and continuation of all the actions of the Respondent Bank against the Petitioners undertaken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(f) To pass any other and further orders as may be deemed fit and proper by this Hon'ble Court.

(g) To provide for the cost of this petition.”

3. It is submitted by the learned advocate Mr. Aman Mir for the petitioner that the respondent bank was to take possession of the property in question on 26.06.2024. It is further submitted by the learned advocate for the petitioner as was submitted in the said application, the respondent before proceedings to take actual possession of the disputed property has not taken symbolic possession under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. It is submitted that in absence of compliance of the Section 13(4) of the Act, is dehors the statutory provision of Section. In light of the aforesaid, it is submitted that the prayers as prayed for is granted.

4. This Court has perused the order passed by the learned Debts Recovery Tribunal, Ahmedabad dated 25.06.2024, it is apposite to refer the same, which reads as under :-

ORDER

“1. Learned Counsel for the Applicants submitted that the Respondent Bank is going to take possession of the property in question on 26/06/2024. He further submitted that though the Respondent, before proceeding to take actual possession of disputed property, has not taken its symbolic possession u/s 13(4), however with a view to protect possession of disputed property, in order to settle the matter with the Respondent, the Applicants are ready and willing to deposit Rs. 3 lakhs with the Respondent Bank on or before the date of possession i.e. 26/06/2024. In support of his submission, he has filed Undertaking of the Applicants to that effect vide Ex.A/09.

2. Ld. Counsel for the Respondent Bank made an endorsement on the Undertaking filed by the Applicants and stated that the Applicants may be directed to pay Rs. 3 Lakhs by tomorrow and further Rs. 3 Lakhs within 14 days from today and in the event of default, the Bank may be permitted to proceed further in ac