Punjab & Haryana HC stays Proceedings under SARFAESI Act, till next hearing, subject to Depositing a sum of Rs.10 L [Read Order]
The petitioner is relegated to avail the appropriate statutory remedy under the SARFAESI Act before the DRT and thereafter before DRAT.
![Punjab & Haryana HC stays Proceedings under SARFAESI Act, till next hearing, subject to Depositing a sum of Rs.10 L [Read Order]](https://images.taxscan.in/h-upload/2025/08/09/2074761-sarfaesi-act-hc-taxscan.webp "Punjab & Haryana HC stays Proceedings under SARFAESI Act, till next hearing, subject to Depositing a sum of Rs.10 L [Read Order]")
In a recent case, the High Court of Punjab & Haryana stayed the Proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) till next date of hearing subject to depositing a sum of Rs.5,00,000. The petition has been filed by the petitioners-borrowers challenging an order dated 18.04.2025...
In a recent case, the High Court of Punjab & Haryana stayed the Proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) till next date of hearing subject to depositing a sum of Rs.5,00,000.
The petition has been filed by the petitioners-borrowers challenging an order dated 18.04.2025 passed under section 14 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’).
If the borrower does not willingly turn over a secured asset, a secured creditor may request the help of the Chief Metropolitan Magistrate (CMM) or District Magistrate (DM) under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). It is the responsibility of the DM or CMM to help the secured creditor with this procedure.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
In this approach, the DM or CMM plays a ministerial role rather than an adjudicatory one. They do not take into account the merits of a borrower's arguments; instead, they mainly check for compliance with Section 14 standards. They have 30 days, or up to 60 days, to make a decision on an application.
The bench of Chief Justice Justice Sheel Nagu and Justice Yashvir Singh Rathor while taking cognizance of the matter on 29.05.2025, has stayed the proceedings under the SARFAESI Act, till the next date of hearing, subject to the petitioners depositing a sum of Rs.5,00,000/- by 02.06.2025 and another sum of Rs.5,00,000/- by 15.06.2025.
Counsel for the respondent No. 1 bank does not dispute that the aforesaid conditions, subject to which the interim order dated 29.05.2025 was passed, have been complied with.
Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here
Counsel for respondent No.1-Bank informs that the loan account has been regularized and the assurance of the petitioners-borrowers of paying the rescheduled installments in the future has been accepted.
The rival parties are free to indulge in any kind of settlement in future by way of mediation or otherwise, failing which the petitioners-borrowers are free to approach the Debts Recovery Tribunal (DRT) and thereafter, Debts Recovery
Appellate Tribunal (DRAT).
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates
