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GOPINATH P.
Mariamma Varghese W/o K. T. Varghese – Appellant
Versus
Union of India Rep. by the Secretary – Respondent
JUDGMENT :
1. Petitioner has approached this Court challenging Ext.P12 order of the Tribunal on I.A. Nos. 2417/2022 and 3260/2022 in S.A. No. 475/2022.
2. It is the case of the petitioner that the Tribunal has not properly appreciated the contentions taken by the petitioner before the Tribunal and has mechanically rejected the stay application by directing a payment of a sum of Rs.53 Lakh, as a condition for stay of further proceedings. It is submitted that the amount claimed by the Bank has not been properly adjudicated and the amount is to be adjudicated in the original application filed by the Bank under the provisions of the Recovery of Debts and Bankruptcy Act, 1993. It is submitted that the Tribunal has found that there is no prima facie illegality in the proceedings initiated under Section 14 of the SARFAESI Act, in a mechanical manner. It is submitted that out of the two items of property, which have been mortgaged, one item of property had already been taken possession of and the value that may be released by the sale of that property will be sufficient to clear the entire liability with the Bank. It is submitted that Interlocutory Applications filed for conducting valuation
The court clarified procedural compliance under the SARFAESI Act regarding the enforcement of mortgage and the proper grounds for granting a stay on proceedings.
The SARFAESI Act mandates creditors to follow due process in loan recovery and property possession, ensuring fairness and compliance.
When a petitioner has an efficacious alternative remedy under the SARFAESI Act to challenge an interlocutory order of a Tribunal, the High Court will typically decline to exercise its supervisory jur....
Court emphasized the need for timely consideration of pending applications to ensure protection of rights in property disputes.
A failure to comply with tribunal conditions negates entitlement to relief under Article 227 of the Constitution.
A petitioner must utilize available alternative remedies before challenging tribunal orders in higher courts.
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....
Compliance with court orders and appropriate recourse to debts recovery mechanisms under SARFAESI Act is essential.
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