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ASHWANI KUMAR MISHRA, ASHUTOSH SRIVASTAVA
Himri Estate Pvt. Ltd. – Appellant
Versus
State of U. P. – Respondent
JUDGMENT :
Petitioners have invoked the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India, challenging the First Information Report lodged against them on 22.7.2023, registered as Case Crime No. 611 of 2023, under Sections 420, 120-B of IPC and Section 82 of Registration Act, 1908, Police Station - Kavi Nagar, District - Ghaziabad. It is urged that the FIR is maliciously instituted in respect of a civil dispute and is thus an abuse of the process of law. It is also urged that the first informant has lodged the FIR on behalf of the borrower company, which undertook loan and defaulted in its repayment, on account of which proceedings were initiated in accordance with the provisions of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the 'SARFAESI Act'). Borrower company since has failed to seek any protection before the competent forum, in respect of coercive proceedings under the SARFAESI Act, it has lodged the impugned FIR with the intent to pressurize the financ
Criminal proceedings cannot be initiated to challenge actions taken under the SARFAESI Act, as it undermines the exclusive jurisdiction of the Debt Recovery Tribunal.
The SARFAESI Act mandates exhausting statutory remedies before seeking extraordinary relief under Article 226; procedural compliance is essential, and the auction process cannot be set aside absent s....
Civil Courts have jurisdiction in SARFAESI Act matters only when the secured creditor has not initiated actions under the Act. Limitation laws apply strictly to such actions.
Civil courts cannot entertain suits regarding matters under the SARFAESI Act, including injunctions against auction purchasers, as jurisdiction lies exclusively with the DRT.
Finality of a prior judgment bars new proceedings under the SARFAESI Act when based on the same invalid security, reinforcing jurisdictional limits of financial institutions.
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 a complete legal framework for secured creditors, ensuring that their actions are protected when conducted in good faith, and establishes that criminal proceedings cannot be....
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