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2025 Supreme(Online)(Ker) 57934
IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
ABDUL LATHEEF – Appellant
Versus
THE URBAN CO-OP BANK LTD. – Respondent
WP(C) NO. 38541 OF 2025
For the Appellants/Petitioners: SMT.M.R.REENA, SRI.P.S.SUJETH
For the Respondents: SRI.U.K.DEVIDAS, SHRI.GODWIN JOSEPH
Coercive proceedings against secured assets must be challenged before the Debts Recovery Tribunal per the SARFAESI Act.
Headnote:This writ petition challenges the sale notice issued by the bank under the SARFAESI Act. The petitioner failed to approach the Debts Recovery Tribunal as required for such challenges. The Court affirms that coercive actions against a secured asset must be dealt with by the Tribunal. The petitioner's right to contest the sale is preserved, and a temporary deferment is provided contingent on a deposit to the Tribunal. The Court orders exclusion of the petition duration in limitation calculations.
| Table of Content |
|---|
| 1. challenge to sale notice (Para 1) |
| 2. procedural argument and lack of remedy (Para 2 , 3) |
| 3. court directive on proper forum (Para 4) |
BASANT BALAJI J ======================
W.P. (C) No. 38541 of 2025 ========================
Dated 19th day of December 2025 JUDGMENT The petitioner has filed this writ petition challenging Ext.P2 sale notice and all further proceedings conducted on 14.10.2025.
2. The learned counsel for the third respondent submits that he has deposited 25% of the bid amount, amounting to ₹9,25,000/- on 14.10.2025, and that he is ready to deposit the balance amount as well.
3. Since the sale has already been conducted and 25% of the bid amount has been deposited, the petitioner ought to have independently challenged the same before the Debts Recovery Tribunal under Section 17 of the SARFAESI Act . However, the petitioner has not availed of that remedy and has approached this Court by filing the present writ petition.
4. The Apex Court inSouth Indian Bank Ltd. (M/s.) v. Naveen Mathew Philip [2023 KHC 6435] has held that any coercive proceedings against a secured asset can only be challenged before the Debts Recovery Tribunal. Therefore, leaving open the right of the petitioner to challenge the same, this writ petition is disposed of. The period spent before this Court in filing the writ petition shall be excluded while computing the period of limitation before the DRT.
The petitioner is ready to deposit ₹15,00,000/- on or before 5:00 PM on Monday, 22.12.2025. Upon such deposit, the confirmation of sale and issuance of the sale certificate shall stand deferred for a period of one month to enable the petitioner to approach the Debts Recovery Tribunal. If the auction purchaser is ready to deposit the balance amount, the same shall be kept in a separate account.
