IMPORTANT POINT
The High Court should not interfere in matters arising under the SARFAESI Act when an effective alternative remedy is available, reinforcing the principle of exhausting statutory remedies before seeking judicial intervention.

JUDGMENT :

Hon'ble Ajit Kumar,J.

1. Heard Sri Ashok Pandey, learned counsel for the petitioners and Sri Alok Rai and Ms. Eshita Sand, learned counsel for the contesting respondent bank.

2. The petitioners have invoked the extraordinary jurisdiction of this Court under Article 226 of the Constitution, seeking challenge to the order passed by the Debt Recovery Tribunal upon a miscellaneous application bearing No.-40 of 2024 (Kasturi Devi Sheetalaya Pvt. Ltd. v. Bank of India) arising out of Securitization Application No.- 461 of 2022.

3. A preliminary objection has been raised by learned counsel for the contesting respondent-bank that the petitioner has an alternative efficacious remedy to prefer an appeal before the Debt Recovery Appellate Tribunal under Section 18 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act, 2002') and this Court, therefore, may not interfere invoking extraordinary jurisdiction of this Court under Article 226 of the Constitution.

4. Learned counsel for the respondent has further relied upon a recent judgment of Supreme Court in the case of PHR Invent Educational Society v. UCO Bank and others (Civil Appeal No.-4845 of 2024) decided on 10th April, 2024 in which Supreme Court has held that the High Court should not interfere in matters arising out of SARFAESI Act, 2002 when the Legislature has prescribed for special forum for the parties to exhaust remedy therein.

5. Meeting the preliminary objections, learned counsel for the petitioner submits that Section 18 of SARFAESI Act, 2002, as it stood originally came to be amended by amending Act No.-30 of 2004 putting a rider that an appeal would lie against an order passed under Section 17 of the SARFAESI Act, 2002. He submits that an order passed on miscellaneous application regarding the court fee would not amount to an order passed under Section 17 of SARFAESI Act, 2002. He would submit that the provisions as contained under Section 17 of the SARFAESI Act, 2002, lays down a detailed procedure regarding recovery of the secured debts and it is after putting aggrieved person to notice and inviting objections under Sections 13(4) that recourse is taken to recover the secured assets by coercive measures. Section 17 of the SARFAESI Act, 2002 prescribed power of the Debt Recovery Tribunal to entertain an application filed at the instance of borrower or defaulter against the measures taken by the bank to secure debts under Section 13. Section 17 (1), (2), (3), (5) and (7) as are relevant for the purpose of the case are reproduced hereunder:

"17. Application against measures to recover secured debts.—(1) Any person (including borrower), aggrieved by any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor or his authorized officer under this Chapter,1[may make an application along with such fee, as may be prescribed, to the Debts Recovery Tribunal having jurisdiction in the matter within forty five days from the date on which such measure had been taken:

Provided that different fees may be prescribed for making the application by the borrower and the person other than the borrower.

Explanation.—For the removal of doubts, it is hereby declared that the communication of the reasons to the borrower by the secured creditor for not having accepted his representation or objection or the likely action of the secured creditor at the stage of communication of reasons to the borrower shall not entitle the person (including borrower) to make an application to the Debts Recovery Tribunal under this sub-section (1) of section 17.)

(1A) An application under sub-section (1) shall be filed before the Debts Recovery Tribunal within the local limits of whose jurisdiction-

(a) the cause of action, wholly or in part, arises;

(b) where the secured asset is located; or

(c) the branch or any other office of a bank or financial institution is maintaining an account in whi