AI Overview...
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SARFAESI Short Time Notice - The SARFAESI Act allows secured creditors to initiate proceedings to recover debts by issuing notices under Section 13(2). These notices serve as a preliminary step before taking possession or enforcing security interests. Several cases highlight that notices issued under Section 13(2) are at the initial stage of enforcement, and courts often examine the legality and timeliness of these notices. For instance, petitions have been filed to quash notices on grounds such as late receipt or procedural irregularities, and courts have generally upheld the statutory authority of the notices, emphasizing that they are part of a legal process that can be challenged later in appropriate forums like the Debt Recovery Tribunal (DRT) SOUTH INDIAN BANK LTD., REPRESENTED BY ITS BRANCH MANAGER, VALLIKAVU BRANCH, VALLIKAVU, KARUNAGAPPALLY, KOLLAM, KERALA vs RAHIM H K., AGED 48 YEARS S/O HASSANKUNJU - Kerala, SHABEENA.S. vs CENTRAL BANK OF INDIA - Kerala, Rekha Devi VS Central Bank of India, through the Deputy Regional Manager, Ranchi - Jharkhand, WILLIAM VIRJULIUS MERCIER vs THE MANAGER - Kerala, CRYSTAL NATURAL FURNITURE CO.PVT.LTD, Vs FEDERAL BANK LTD AND OTHERS - Kerala.
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Main Points & Insights:
- Notices under Section 13(2) are issued by banks or financial institutions to inform the borrower of default and demand repayment.
- These notices are critical preliminary steps before taking physical possession or sale of secured assets.
- Challenges to notices often involve procedural lapses, late receipt, or disputes over settlement or repayment.
- Courts generally recognize the validity of such notices but may grant short time extensions or consider the merits of settlement requests.
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The proceedings under SARFAESI are at the initial stage when notices are issued; final enforcement actions like possession or sale follow subsequent statutory steps SOUTH INDIAN BANK LTD., REPRESENTED BY ITS BRANCH MANAGER, VALLIKAVU BRANCH, VALLIKAVU, KARUNAGAPPALLY, KOLLAM, KERALA vs RAHIM H K., AGED 48 YEARS S/O HASSANKUNJU - Kerala, SABEEHA BASHEER Vs BANK OF BARODA - Kerala, Nisita Enterprise Pvt. Ltd. VS State Bank of India and Others EP by It’s Managing Director - Gauhati.
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Analysis and Conclusion:
- The Short Time Notice under SARFAESI, primarily issued under Section 13(2), functions as a statutory demand for repayment and a precursor to enforcement actions.
- While these notices are enforceable, borrowers can challenge them on procedural grounds or seek relief through courts or tribunals.
- Courts tend to uphold the notices if issued correctly but also recognize borrowers' rights to contest or seek time for settlement, especially at the notice stage.
- Ultimately, the SARFAESI process emphasizes a balance between creditor rights and borrower protections, with notices playing a pivotal role at the initial enforcement stage SOUTH INDIAN BANK LTD., REPRESENTED BY ITS BRANCH MANAGER, VALLIKAVU BRANCH, VALLIKAVU, KARUNAGAPPALLY, KOLLAM, KERALA vs RAHIM H K., AGED 48 YEARS S/O HASSANKUNJU - Kerala, SHABEENA.S. vs CENTRAL BANK OF INDIA - Kerala.
References: - SOUTH INDIAN BANK LTD., REPRESENTED BY ITS BRANCH MANAGER, VALLIKAVU BRANCH, VALLIKAVU, KARUNAGAPPALLY, KOLLAM, KERALA vs RAHIM H K., AGED 48 YEARS S/O HASSANKUNJU - Kerala - Kut Energy Pvt. Ltd. VS Authorized Officer, Punjab National Bank, Large Corporate Branch, Ludhiana - Supreme Court - WILLIAM VIRJULIUS MERCIER vs THE MANAGER - Kerala - SABEEHA BASHEER Vs BANK OF BARODA - Kerala - SHABEENA.S. vs CENTRAL BANK OF INDIA - Kerala - Rekha Devi VS Central Bank of India, through the Deputy Regional Manager, Ranchi - Jharkhand - Hamdard Engineering through its Sole Proprietor Harinder Singh VS City Union Bank Limited - Punjab and Haryana - ST.GEORGE ELECTRONICA PVT LTD vs AUTHORIZED OFFICER UNDER SARFAESI ACT - Kerala - Nisita Enterprise Pvt. Ltd. VS State Bank of India and Others EP by It’s Managing Director - Gauhati - CRYSTAL NATURAL FURNITURE CO.PVT.LTD, Vs FEDERAL BANK LTD AND OTHERS - Kerala
Search Results for "Sarfaesi Short Time Notice"
2025 Supreme(Online)(Ker) 40081 • India - IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K. NARENDRAN, MURALEE KRISHNA S., JJ
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 , (for short 'SARFAESI Act') till such time. ... They have also sought for a writ of certiorari to quash Ext.P3 notice dated 02.06.2025 issued by the Advocate Commissioner appointed by the Chief Judicial Magistrate Court in MC No.831 of 2025, invoking the provision under Section 14 of the SARFAESI Act. 3. ... In Naveen Mathew Philip [2023 SCC OnLine (SC) 435] the Apex Court noticed that....
2019 0 Supreme(SC) 895 • India - Supreme Court
UDAY UMESH LALIT, VINEET SARAN
13(2) of SARFAESI Act – In present case deposit of Rs.40 crores in terms of order of High Court ... Settlement – Secured creditor’ would be entitled to proceed only against secured assets mentioned in notice under Section 13(2) of the Securitisation and Reconstruction ... A demand notice was thereafter issued by the Bank under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 ("SARFAESI Act", for short) on 15.03.2017. ... It was o....
2012 Supreme(Online)(KER) 10915 • India - High Court of Kerala
ANTONY DOMINIC, J
The Bank initiated SARFAESI proceedings, issuing a possession notice, prompting the petitioner to seek time to settle the liability ... Loan - Housing Loan - SARFAESI Act Section List - The court assessed the application of SARFAESI proceedings, balancing the Bank's ... rights to recovery against the petitioner's request for time, concluding that a short grace period would not harm the Bank's interests ... Default was committed and as a result Bank has initiated #HL_S....
2022 Supreme(Online)(KER) 43527 • India - High Court of Kerala
BECHU KURIAN THOMAS, J
SARFAESI ACT - ONE TIME SETTLEMENT - SUMMARY Fact of the Case: Petitioner challenged Ext.P3 and P4 notices and sought ... Issues: Whether the petitioner is entitled to a one time settlement under the SARFAESI Act. ... a direction to consider the application filed by the petitioner for a one time settlement. ... Ext.P3 is the notice issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (....
2025 Supreme(Online)(Ker) 48828 • India - IN THE HIGH COURT OF KERALA AT ERNAKULAM
MOHAMMED NIAS C.P., J
The case involves a writ petition seeking a Certiorari to quash the notice issued under the SARFAESI Act. ... The petitioner argues the notice was received late and seeks time to challenge it in the Debt Recovery Tribunal. ... The learned counsel for the petitioner submits that the notice by the Advocate Commissioner, threatening dispossession though dated 22.08.2025, was received later and seeks a short time to approach the Debts Recovery Tribunal under Section 17 ....
2018 0 Supreme(Jhk) 1348 • India - Jharkhand
RAJESH SHANKAR
SARFAESI - Quashing of Proceedings - Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest ... Act, 2002 (SARFAESI Act, 2002) - Section 14 Fact of the Case: The petitioners sought to quash the proceedings of SARFAESI ... Case No. 14/2018, including an order for physical possession of their residential house under Section 14 of the SARFAESI Act, 2002 ... A notice under Section 13(2) of the SARFAESI, Act, 2002 was issued to the peti....
2021 0 Supreme(P&H) 100 • India - Punjab and Haryana
JASWANT SINGH, JASGURPREET SINGH PURI
to quash a demand notice and possession notice issued under the SARFAESI Act, 2002, claiming readiness to settle the dispute through ... SARFAESI Act, 2002 - Quashing of Demand Notice - Dismissal of Petition Fact of the Case: The petitioner-firm sought ... a one-time settlement. ... notice dated 18.09.2019 (Annexure P-2) issued under Section 13(4) of the SARFAESI Act, 2002 on the ground that it is ready to settle the dispute by way of one ....
2024 Supreme(Online)(KER) 20354 • India - High Court of Kerala
Dinesh Kumar Singh, J
Notices were issued under the SARFAESI Act, and despite a settlement agreement, the petitioner failed to comply, prompting the bank ... Writ - Loan Default - SARFAESI Act Sections 13(2), 8(5)(d) - The court dismissed the writ petition as no grounds were found to ... interfere with the bank's actions under the SARFAESI Act, affirming the statutory provisions that allow for enforcement of security ... Thereafter, Ext.P1 notice dated 31st January 2022 was issued under Section 13(2) of the Securi....
2019 0 Supreme(Gau) 899 • India - Gauhati
ARUP KUMAR GOSWAMI, SANJAY KUMAR MEDHI
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - NPA - Restructuring of ... A notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act'), was issued, lastly, on 31.5.2019. 3. ... In response to the said notice, representations were filed. Placing reliance on the document dated 1.1.2019 (Annexure-H) issued by the Reserve Bank of India providing for one-#H....
2010 Supreme(Online)(KER) 34254 • India - High Court of Kerala
C.K. ABDUL REHIM, J
Finding of the Court: The court noted that the proceedings were at the notice stage under Section 13(2) and the petitioners ... Securitization - SARFAESI Act - Section 13(2) - The court addressed the legality of proceedings under the SARFAESI Act initiated ... Fact of the Case: The petitioners, a company and its directors, challenged proceedings under the SARFAESI Act initiated ... It is evident that the proceedings initiated under the SARFAESI Act is only at the stage of issuing notice#HL....
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