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LISA GILL, RITU TAGORE
Vikram Malhotra – Appellant
Versus
State of Punjab – Respondent
JUDGMENT
Mrs. Lisa Gill, J. (Oral)
Challenge in this writ petition is to declaration of loan account of the petitioner as Non Performing Asset (NPA), besides notice dated 31.07.2019, under Section 13 (2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act') as well as notice dated 05.02.2020, Annexure P-2 and notice dated 04.08.2022, Annexure P-4 and further proceedings taken under the SARFAESI Act pursuant thereto by the respondent-Financial Institution against the petitioner.
2. We heard learned counsel for the parties and went through the file as well as the documents presented in Court.
3. It is submitted that petitioner availed housing loan facility to the tune of Rs. 2,26,37,831/- on 08.05.2018, however due to some temporary deficiency in the account, it was declared NPA on 01.02.2019. Notice under Section 13 (2) of the SARFAESI Act was issued by Dewan Housing Finance Limited (DHFL) (Now Piramal Capital and Housing Finance Limited). Possession notice was issued on 05.02.2020, allegedly in violation of Rule 8 (1) of the Security Interest (Enforcement) Rules, 2002 (for short 'the Rules'). Insolvency
Judicial restraint is required under Article 226 when alternative statutory remedies are available, especially in financial recovery matters.
(1) Writ petitions filed against proposed action under Section 13(4) of SARFAESI Act is not maintainable and/or entertainable at all.(2) Recovery of debt – High Court should have been extremely caref....
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.
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....
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