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IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K.NARENDRAN, MURALEE KRISHNA S.
K. Elias, S/o. Varghese – Appellant
Versus
Hero Fincorp Ltd, Rep. By Its Chairman – Respondent
| Table of Content |
|---|
| 1. previous judgments concerning related parties. (Para 3) |
| 2. relief sought in writ petition. (Para 4) |
| 3. arguments of the appellant and respondents. (Para 5 , 6 , 7 , 8 , 9) |
| 4. legal standards regarding writ petitions against nbfcs. (Para 10 , 11 , 12 , 13 , 14) |
| 5. finality of the court's decision. (Para 15) |
JUDGMENT :
The appellant-petitioner filed W.P.(C)No.48356 of 2025, invoking the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India, seeking the following reliefs;
2. The proceedings initiated against the appellant-petitioner, under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) is in respect of a term loan for Rs.4.60 Crores availed by him along with respondents 3 to 7, from the 1st respondent Hero Fincorp Ltd., which is a non-banking financial company (NBFC), for a term of 180 months, for the expansion of their business. A copy of the loan sanction letter dated 12.10.2015 is marked as Ext.P1. On account of the default committed by the petitioner and respondents 3 to 7 in effecting repayment of the loan amount, the account was classified as
Writ petitions against private financial institutions under the SARFAESI Act are not maintainable; statutory remedies must be pursued instead.
A writ petition against a Non-Banking Financial Company is not maintainable as it does not perform a public function, referring to precedents set by the Supreme Court.
The High Court ruled that parties must reveal all material facts in writ petitions and that statutory remedies available under the SARFAESI Act must be pursued before invoking writ jurisdiction.
The High Court must not entertain writ petitions regarding SARFAESI actions without the petitioner first pursuing statutory remedies before the Debts Recovery Tribunal as mandated under the SARFAESI ....
The High Court cannot intervene in SARFAESI Act proceedings initiated by a private non-banking financial company if alternatives are specified, especially when compliance with court orders is lacking....
Financial institutions cannot initiate SARFAESI proceedings for loan amounts below Rs.20,00,000/- as per Central Government regulations.
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....
The High Court affirmed that the adequate remedy under the SARFAESI Act must be pursued before seeking judicial intervention, emphasizing the importance of exhausting statutory options.
Legal heirs of a deceased guarantor cannot contest proceedings under SARFAESI Act after notice served during the guarantor's lifetime, as they must seek remedy via Debts Recovery Tribunal.
(1) Writ petitions filed against proposed action under Section 13(4) of SARFAESI Act is not maintainable and/or entertainable at all.(2) Recovery of debt – High Court should have been extremely caref....
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