The SARFAESI Act provides an efficacious remedy for redressal, and interference by writ courts is not warranted in the absence of extraordinary or exceptional grounds.

LISA GILL, J.

CM-16768-CWP-2023

Prayer in the application is for preponement of hearing of this petition.

For the reasons mentioned in the application as well as arguments addressed, hearing of the petition is preponed from 02.11.2023 for today itself, at request of learned counsel.

Application is disposed of, accordingly.

CWP-20811-2023 (O&M)

1. Petitioners in this writ petition are aggrieved of proceedings under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short – ‘SARFAESI Act’) initiated against them by the respondent. Petitioners seek quashing of order dated 11.07.2023 under Section 14 of SARFAESI Act passed by the learned Additional District Magistrate, Sangrur.

2. It is vehemently argued that petitioners never received any notice under section 13(2) of SARFAESI Act or any other notice and even order dated 11.07.2023, it is submitted, was obtained by the petitioners through an application under Right to Information Act, 2005. It is submitted that though there was financial indiscipline inasmuch as 37 instalments were not deposited, however, petitioners are ready and willing to deposit the amount due. Proceedings under SARFAESI Act, it is submitted, are absolutely illegal and in violation of provisions of law. It is, thus, prayed that this petition be allowed.

3. Heard learned counsel for the petitioners.

4. Account of the petitioners was declared Non Performing Asset (NPA) on 01.01.2020. Notices under Sections 13(2) and 13 (4) of SARFAESI Act were also issued though case set up by the petitioners is that they never received said notices.

5. Be that as it may, it is undeniable that petitioners have efficacious remedy for redressal of their grievance as raised in this writ petition. SARFAESI Act is a complete code in itself. No extraordinary or exceptional ground has been pointed out by learned counsel for the petitioners, which calls for interference in exercise of jurisdiction under Article 226 of Constitution of India. Hon’ble the Supreme Court has consistently deprecated the practice of interference by writ courts at this stage. Gainful reference can be made to the judgments of Hon’ble the Supreme Court in Union Bank of India v. Satyawati Tandon and others, 2010(8) SCC 110; Varimadugu Obi Reddy v. B. Sreenivasulu and others, 2023(1) R.C.R.(Civil) 34 and M/s South Indian bank Ltd. And others v. Naveen Mathew Philip and another, 2023(2) RCR (Civil) 771. Hon'ble the Supreme Court in the case of M/s South Indian Bank (supra) held as under:-

“13. ...... We may, however, reiterate the settled position of law on the interference of the High Court invoking Article 226 of the Constitution of India in commercial matters, where an effective and efficacious alternative forum has been constituted through a statute.

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14. A writ of certiorari is to be issued over a decision when the Court finds that the process does not conform to the law or statute. In other words, courts are not expected to substitute themselves with the decision-making authority while finding fault with the process along with the reasons assigned. Such a writ is not expected to be issued to remedy all violations.

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15. The object and reasons behind the Act 54of 2002 are very clear as observed by this Court in Mardia Chemicals Ltd. v. Union of India, (2004) 4 SCC 311. While it facilitates a faster and smoother mode of recovery sans any interference from the Court, it does provide a fair mechanism in the form of the Tribunal being manned by a legally trained mind. The Tribunal is clothed with a wide range or powers to set aside an illegal order and thereafter, grant consequential reliefs, including re-possession and payment of compensation and costs. Section 17(1) of the SARFAESI Act gives an expansive meaning to the expression “any person”, who could approach the Tribunal.

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18. While doing so, we are conscious of the fact that the powers conferred under Article 226 of the Constitution of I