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S. S. SUNDAR, N. SENTHILKUMAR
Zubeida Asgar Ali – Appellant
Versus
Department of Supervision – Respondent
ORDER :
(Order of the Court was made by S.S. SUNDAR, J.)
Prayer : Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Declaration declaring the act of the Second Respondent Bank in issuance of the notice under Section 13(2) of the SARFAESI Act dated 16.08.2023 in Ref. No.JMFARC/VS/FY24/024, JMFARC/VS/FY24/025 and JMFARC/VS/FY24/026 and subsequent notice dated 01.12.2023 under Section 13(2) of the SARFAESI Act in Ref. No.JMFARC/VS/FY24/090, JMFARC/VS/FY24/091 and JMFARC/VS/FY24/092 is ultra vires the provisions of the SARFAESI Act, unconstitutional, lacks sanction of law, non-est, void ab inito.
This writ petition is for issuance of a Writ of Declaration declaring the act of the 2nd respondent in issuing a notice under Section 13(2) of the SARFAESI Act, dated 16.08.2023, and subsequent notice, dated 01.12.2023, under Section 13(4) of SARFAESI Act is ultra vires the provisions of the SARFAESI Act.
2. Short facts that are necessary for the disposal of this writ petition are as follows :
The petitioner is the wife and legal heir of the original borrower. The petitioner's husband, who is the original borrower, is no more and the other legal heirs of t
An Asset Reconstruction Company cannot enforce rights over properties not included in the original security interest assigned to it under the SARFAESI Act.
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....
A deemed lender under the SARFAESI Act can invoke rights without reissuing a demand notice if the previous lender had done so, even after settlement.
The court affirmed that the respondent qualified as a financial institution under the SARFAESI Act, rendering the recovery proceedings lawful and the writ petition non-maintainable due to available s....
Civil Courts have jurisdiction in SARFAESI Act matters only when the secured creditor has not initiated actions under the Act. Limitation laws apply strictly to such actions.
Financial institutions cannot initiate SARFAESI proceedings for loan amounts below Rs.20,00,000/- as per Central Government regulations.
Point of Law : Section 17 of SARFAESI Act reads application against measures to recover secured debts.
Finality of a prior judgment bars new proceedings under the SARFAESI Act when based on the same invalid security, reinforcing jurisdictional limits of financial institutions.
The bar under Section 34 of the SARFAESI Act cannot be extended to claims involving collusion and fraud, which are better addressed before the Civil Court.
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