The main legal point established in the judgment is that the borrower's right to challenge the actions of the secured creditor under the SARFAESI Act is subject to the provisions of the Act, and the borrower has the right to approach the Debts Recovery Tribunal as provided under Section 17.

With the consent of the learned counsel on either side, this writ petition is taken up for final disposal.

2. The case of the petitioner in a nutshell, is as under:

(i) The respondent Bank extended loan facility to the core of Rs.3,00,000/-to a partnership firm, namely, "Adworld", in which the petitioner herein is also a partner. The accounts of their subsequently started partnership firm, namely, "Karvin Corporation" was also operated with the respondent Bank.

(ii) While the outstanding of M/s.Adworld as on 10. 1997 was arrived at Rs.20,35,000/-, a sum of Rs.3,37,660/-was repaid and the remaining due was Rs.17,83,578/-. Thereafter, the said remaining due was remitted by effecting a total payment of Rs.17,85,000/- on 17.05.1999 through the sale of a property, which was already mortgaged with the respondent Bank. Even after remitting the balance amount, the respondent Bank arbitrarily adjusted a sum of Rs.5,00,000/- towards penal interest.

(iii) This being the position, in the year 2002, the respondent Bank filed O.A.No.118 of 2002 in DRT-I against the two firms, the partners and guarantors for a total claim of Rs.1,03,86,184.78 paise, inclusive of interest up to 08.03.2002. The property which was already sold was also wrongly included as B Schedule property in the said O.A.No.118 of 2002 and the same was amended in an application filed by the respondent Bank in I.A.No.159 of 2003 vide order dated 10.03.2005.

(iv) In a meeting that took place among the borrowers and the respondent Bank on 11. 2006, an OTS offer was made and a sum of Rs.30,00,000/- was insisted to be paid by the respondent Bank towards OTS, and though the petitioner expressed his willingness to pay Rs.30,00,000/-as OTS before 10.03.2007, the respondent Bank demanded 25% of the offer amount as down payment. Subsequently thereto, the borrower arranged the repayment of Rs.5,00,000/-and in the accompanying covering letter dated 13.03.2007, promised to pay the remaining amount of Rs.25,00,000/-towards full and final settlement by 31.03.2007. Despite the balance down payment of Rs.2.5 lakhs being made by the petitioner on 29.05.2007 through Registered Post, the respondent Bank contemplated further action based on the notice dated 02.01.2007 issued under Section 13(2) of the SARFAESI Act.

(v) Since the respondent Bank initiated steps against him in contravention of Section 13 (3A) of the SARFAESI Act, after having failed to communicate within one week of the receipt of the representation dated 13.03.2007, the petitioner has now approached this Court for an efficacious remedy.

3. In the counter affidavit, the respondent Bank has negated the averments of the petitioner and has stated as under:

(i) The petitioner is one of the partners of M/s.Adworld, a partnership firm carrying on business in Chennai and also a partner in M/s.Karvin Corporation, another firm started by him along with other partners. Both the firms are represented by the petitioner and other partners. M/s.Adworld is engaged in advertising business and M/s.Karvin Corporation is engaged in the export of granite and slate materials. In the year 1988, both the firms approached the respondent bank for certain credit facilities to support their business and the respondent bank considered and granted secured overdraft facility to M/s.Adworld and the partners of M/s.Adworld executed the required loan documents and as per the terms and conditions of the loan documents, they undertook to pay interest at the rate of 15.75% per annum compounded with quarterly rests. In turn, the firms have mortgaged their immovable assets. As they failed to clear the outstanding dues, the respondent bank initiated proceedings and filed an Original Application in O.A. No.118 of 2002 before the Debts Recovery Tribunal - I claiming a sum of Rs.17,26,637.44 with further interest at 15.75% p.a. compounded with quarterly rests from the date of filing the suit, i.e. 08.03.2002 till the date of realisation of the debt along with