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TEJINDER SINGH DHINDSA, SANJIV BERRY
Devender Singh – Appellant
Versus
Dewan Housing Finance Corporation Ltd. (DHFL) (Now Piramal Housing Finance) – Respondent
JUDGMENT
Sanjiv Berry, J.
Present Writ Petition has been filed under Article 226/227 of the Constitution of India for issuance of a writ in the nature of certiorari for quashing the impugned order dated 11.03.2022 (Annexure P-7) passed by respondent No.3, under Section 14 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (for short, 'the SARFAESI Act'), the impugned notice dated 05.01.2023 (Annexure P-8) issued by respondent No.4 for taking over the possession of property in question and also for direction to respondents No. 1 to 4 to grant appropriate time to deposit the balance of the loan amount in pursuance to the One Time Settlement dated 25.09.2019.
2. Brief facts pleaded in the petition are that the petitioner is owner in possession of residential house fully described in para No. 2 of the petition for which he had availed loans from respondents No. 1 and 2 by mortgaging the said property vide loan accounts No.00000284 and No. 00000530 to the tune of Rs.42,00,000/- and Rs.89,00,000/-, respectively. However, due to unavoidable circumstances the petitioner failed to repay the loan amount as per the schedule and the said lo
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.
The duty of a litigant to disclose all material facts and the bank's right to protect its recovery were the central legal points established in the judgment.
The High Court cannot mandate a bank to grant One Time Settlement benefits not compliant with established terms or after scheme expiration.
One Time Settlement proposals require explicit payment timelines; absence of such terms necessitates reasonable enforcement by courts.
The court emphasizes the necessity of adhering to statutory provisions and guidelines during enforcement actions under the Securitization Act.
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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