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LISA GILL, MANISHA BATRA
Kulwinder Singh – Appellant
Versus
State Bank of India – Respondent
JUDGMENT
Mrs. Lisa Gill, J.
Petitioner in this writ petition is aggrieved of proceedings initiated by the respondent-Bank against him under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the SARFAESI Act). There is a prayer for quashing notice dated 16.05.2019 (Annexure P-2) under Section 13 (2) of SARFAESI Act and further proceedings arising thereafter. There is a further prayer for directing the respondents to consider restructuring/regularization of loan account of the petitioner on the premise that he is willing to pay the entire defaulted amount.
2. Notice of motion was issued in this writ petition by co-ordinate Bench on 19.07.2019. Status quo regarding possession of the property was directed to be maintained, subject to deposit of Rs. 9,00,000/- by the petitioner within a period of two weeks therefrom. It was clarified that in case, the amount in question is not deposited, interim order in favour of the petitioner would automatically cease to operate.
3. Deposit in terms of said order was not made and conditions of a subsequent OTS sanctioned by the Bank in October, 2020 were also not compli
The SARFAESI Act, 2002 provides a complete code with alternative efficacious remedies, and the extraordinary writ jurisdiction should only be invoked in exceptional circumstances.
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.
Judicial restraint is required under Article 226 when alternative statutory remedies are available, especially in financial recovery matters.
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.
SARFAESI Act provides a comprehensive mechanism for borrowers to address grievances, and High Courts should exercise restraint in intervention unless extraordinary circumstances arise.
The main legal point established in the judgment is that when an alternative remedy is available under the SARFAESI Act, a writ petition to set aside the proceeding under the Act may not be entertain....
The main legal point established in the judgment is the consideration of the relevant provisions under the SARFAESI Act, the availability of expeditious and effective remedies, and the non-maintainab....
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