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2021 Supreme(UK) 357
IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Manoj Kumar Tiwari, J.
Sher Mohammad & Anr. - Appellants
Versus
Union Of India & Ors. - Respondents
Writ Petition (M/S) No. 2754 of 2021
Decided On : 22-12-2021
Prabha Naithani, Advocate, Rakesh Thapliyal, Advocate
Borrowers may be entitled to limited protection under the SARFEASI Act when facing proceedings due to the non-availability of the Presiding Officer in the Debts Recovery Tribunal.
Headnote:
SARFEASI Act - Borrowers' Entitlement to Limited Protection
Fact of the Case:
The petitioners, borrowers, faced proceedings under the SARFEASI Act due to default in loan repayment. They filed a securitisation application before the Debts Recovery Tribunal, but no relief could be obtained due to the non-availability of the Presiding Officer.
Finding of the Court:
The court disposed of the writ petition with a direction to the respondents not to take any coercive action against the petitioners for a period of four weeks or until the appointment of the Presiding Officer in the Debts Recovery Tribunal, Dehradun, whichever is earlier.
Issues: Entitlement of petitioners to limited protection due to non-availability of Presiding Officer in the Tribunal.
Ratio Decidendi: The court considered the non-availability of the Presiding Officer and the potential impact on the petitioners' rights, leading to the decision to grant limited protection.
Final Decision: The court directed the respondents not to take any coercive action against the petitioners for a specified period or until the appointment of the Presiding Officer, providing the petitioners with limited protection.
JUDGMENT
Manoj Kumar Tiwari, J. - Petitioners are borrowers, who are facing proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFEASI Act") due to default in repayment of loan.
2. It is contended by Ms. Prabha Naithani, learned counsel appearing for the petitioners that petitioners have filed securitisation application under Section 17 of SARFEASI Act before Debts Recovery Tribunal, Dehradun on 25.11.2021, but due to non-availability of Presiding Officer, no relief could be obtained from Debts Recovery Tribunal.
3. Mr. Rakesh Thapliyal, learned Assistant Solicitor General for the Union of India submits that Presiding Officer in Debts Recovery Tribunal, Dehradun would be appointed within three weeks from now.
4. Ms. Prabha Naithani, learned counsel for the petitioners then submits that in view of the non-availability of Presiding Officer in the Tribunal, petitioners are entitled for a limited protection.
5. Having regard to the facts and circumstances of the case, the writ petition is disposed of with a direction to respondents not to take any coercive action against the petitioners for a period of four weeks or till appointment of Presiding Officer in Debts Recovery Tribunal, Dehradun, whichever is earlier.
6. Let certified copy of this order be supplied to the petitioners within 24 hours.
