High Courts cannot interfering in SARFAESI proceedings: Punjab & Haryana HC directs to avail remedy before DRAT [Read Order]
The petitioner is relegated to avail the appropriate statutory remedy under the SARFAESI Act before the DRT and thereafter before DRAT.
![High Courts cannot interfering in SARFAESI proceedings: Punjab & Haryana HC directs to avail remedy before DRAT [Read Order]](https://images.taxscan.in/h-upload/2025/08/09/2074722-under-sarfaesi-act-initiated-prior-to-filing-petition-nclat-national-company-law-appellate-tribunal-taxscan.webp "High Courts cannot interfering in SARFAESI proceedings: Punjab & Haryana HC directs to avail remedy before DRAT [Read Order]")
The Punjab and Haryana High Court directed the assessee to avail remedy before Debts Recovery Tribunal (DRT) and thereafter, Debts Recovery Appellate Tribunal (DRAT) holding that High Courts cannot interfering in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 proceedings. The petitioner,Tajinder Singh who is a borrower,...
The Punjab and Haryana High Court directed the assessee to avail remedy before Debts Recovery Tribunal (DRT) and thereafter, Debts Recovery Appellate Tribunal (DRAT) holding that High Courts cannot interfering in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 proceedings.
The petitioner,Tajinder Singh who is a borrower, assails the notice(s) issued under Section 13(2) and 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and the warrants of possession issued by the Tehsildar, Rupnagar wherein the date for possession has been fixed for 07.08.2025 at 11:30 AM.
How to deal with GST special audit and departmental audit? Register Now
Lenders must give the borrower a notification outlining the amount owed and requesting repayment under Section 13(2). This notification must give the borrower a fair chance to pay off their debt and prevent additional legal action.
The Apex Court has consistently held that High Courts should refrain from interfering under Article 226 of the Constitution in SARFAESI proceedings. The SARFAESI Act, 2002 is a complete code which not only provides for a detailed recovery mechanism but also remedies before the CWP-22405-2025 Debts Recovery Tribunal (DRT) and thereafter, Debts Recovery Appellate Tribunal (DRAT).
The bench of Chief Justice Sheel Nagu and Justice Yashvir Singh Rathor found that the petitioner has failed to avail the statutory alternative remedy of approaching the DRT and/or DRAT.
In view of the above and the view of Apex Court in United Bank of India vs. Satyawati Tondon, (2010), Phoenix ARC Private Limited vs. Vishwa Bharati Vidya Mandir and others, (2022), the court declines exercise of jurisdiction under Article 226 of Constitution.
The petitioner is relegated to avail the appropriate statutory remedy under the SARFAESI Act before the DRT and thereafter before DRAT. Further disposed of the writ petition stands disposed of with aforesaid liberty without commenting on merits.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
