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IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K.SAHOO, CHITTARANJAN DASH
Swarna Prakash Routray – Appellant
Versus
General Manager, Reserve Bank Of India – Respondent
| Table of Content |
|---|
| 1. background facts of the loan and repayment difficulties. (Para 2 , 3) |
| 2. petitioner's arguments regarding the legality of the auction. (Para 4) |
| 3. response from the bank and the auction purchaser. (Para 5 , 6) |
| 4. court's observations on the petitioner's claims. (Para 7 , 8) |
| 5. legal precedents regarding writ jurisdiction under the sarfaesi act. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15) |
| 6. judicial caution against exercising writ jurisdiction when statutory remedies exist. (Para 16 , 17 , 18) |
| 7. petitioner’s locus standi as a guarantor in the legal proceedings. (Para 19 , 20 , 21) |
| 8. court's finding on the bank's compliance with previous orders. (Para 22 , 23 , 24) |
| 9. dismissal of the petition and reminder of the statutory processes. (Para 25 , 26) |
JUDGMENT :
2. Challenge in this writ application has been made to the action of the O.P. Nos. 2 & 3, Bank in proceeding with the e- auction sale notice dated 12.08.2021 under Annexure-8, and consequential actions thereto, and for having not settled the loan account of the Petitioner.
The O.P. Nos. 2 & 3, Bank accordingly issued a notice u/s 13(2) of the SARFAESI Act, 2002 (hereinafter referred to as ‘the Act’) under Annexure-1 dated
The right of redemption under the SARFAESI Act extinguishes upon publication of an auction notice, and guarantees against the actions of secured creditors must follow established procedures before in....
The court held that when a statute provides specific remedies, writ jurisdiction under Article 226 should not be exercised, affirming the precedence of statutory procedures over equitable remedies.
The court established that the right of redemption under the SARFAESI Act is extinguished upon the issuance of a sale certificate, and timely challenge to bank actions is essential.
Court ruled that non-compliance with SARFAESI rules voided sale; observed that the rights of borrowers can be waived through their conduct and failure to assert them timely.
The SARFAESI Act mandates exhausting statutory remedies before seeking extraordinary relief under Article 226; procedural compliance is essential, and the auction process cannot be set aside absent s....
The High Court cannot entertain a writ petition under Article 226 when an effective alternative remedy exists under the SARFAESI Act, emphasizing the need for exhaustion of statutory remedies.
The court reinforced that compliance with statutory notice requirements and fair valuation is essential in property auctions under the SARFAESI Act to protect borrower rights.
The tribunal has jurisdiction to decide auction sale disputes under the SARFAESI Act, and the High Court should insist on exhausting statutory remedies before entertaining a writ petition.
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