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LISA GILL, RITU TAGORE
National Rubber and Chemical Industries – Appellant
Versus
Andhra Bank – Respondent
JUDGMENT
Mrs. Lisa Gill, J.
Prayer in this writ petition is for quashing notice dated 01.02.2019 (Annexure P2) under Section 13 (2) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, the 'SARFAESI Act'), possession notice dated 09.07.2019 (Annexure P4) and sale notice dated 16.09.2019 (Annexure P5).
2. It is submitted that petitioner had availed four loan facilities, i.e. three term loans and one cash credit limit as detailed in Para 2 (iii) of the writ petition. Due to financial indiscipline, all accounts of the petitioner were declared Non-Performing Asset (NPA) on 17.12.2018. Proceedings under the SARFAESI Act were initiated against the petitioner with issuance of notice dated 01.02.2019 under Section 13 (2) of the SARFAESI Act (Annexure P2) seeking deposit of Rs.4,44,28,182.94/- as on 01.02.2019. Notice under Section 13 (4) of the SARFAESI Act was issued on 09.07.2019. Learned counsel for the petitioner submits that action undertaken by the respondents under the SARFAESI Act is absolutely illegal and arbitrary inasmuch as objections dated 22.04.2019 filed by the petitioner pursuant to notice under Section 13 (2) of
The High Court lacks jurisdiction to intervene in proceedings under the SARFAESI Act, reinforcing the necessity for adherence to the statutory remedy framework prior to court interference.
SARFAESI Act provides a comprehensive mechanism for borrowers to address grievances, and High Courts should exercise restraint in intervention unless extraordinary circumstances arise.
The SARFAESI Act, 2002 provides a complete code with alternative efficacious remedies, and the extraordinary writ jurisdiction should only be invoked in exceptional circumstances.
Judicial restraint is required under Article 226 when alternative statutory remedies are available, especially in financial recovery matters.
Legal action under the SARFAESI Act is not barred by concurrent proceedings under the DRT, and where an efficacious alternative remedy exists, a writ petition is unsustainable.
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....
The SARFAESI Act provides specific remedies for grievances, and borrowers do not have a vested right to One Time Settlement benefits, which are subject to the bank's discretion.
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