The Division bench of Gauhati High Court dismisses the writ petition without invoking an alternative remedy of appeal under the SARFAESI Act.
The respondent, Union Bank of India initiated proceedings against the petitioner M/S Veteran Security Service under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and has followed the procedure as prescribed under the provisions of the SARFAESI Act.
Aggrieved by the action the petitioner filed a Writ petition before the High Court challenging the issue of the possession notice under Rule 8(1) read with Section 13(4) of the SARFAESI Act. The division bench of the High Court observed that petitioners have an efficacious alternative remedy by way of filing an appeal under Section 17 of the SARFAESI Act before the Debts Recovery Tribunal and, therefore, no interference is called for in this petition.
The High Court further observed that the Supreme Court in the case of Authorized Officer, State Bank of Travancore &Anr. –vs- Mathew K.C.,has held that “upon a detailed consideration of the statutory scheme under the SARFAESI Act, the availability of remedy to the aggrieved under Section 17 before the Tribunal and the appellate remedy under Section 18 before the Appellate Tribunal, the object, and purpose of the legislation, it was observed that a writ petition ought not to be entertained given the alternate statutory remedy available”.
The Coram of Chief Justice Mr. R.M. Chhayaand Mr. Justice Soumitra Saikia by following the observations of the Apex Court in the case of Authorized Officer, State Bank of Travancorehas held that“we are of the view that this writ petition is not maintainable on ground of availability of alternative remedy and hence, not entertained”.
Mr. A. Sarma appeared on behalf of the petitioner and Mr. S. Dutta appeared on behalf of the respondents.
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