Index

Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI) – Section 13(2) - SARFAESI Act is a complete code in itself which provides the procedure to be followed by the secured creditor and also the remedy to the aggrieved parties including the borrower -  In such circumstance if there is any discrepancy in the manner of classifying the account of the appellants as NPA or in the manner in which the property was valued or was auctioned, the DRT is vested with the power to set aside such auction at the stage after the secured creditor invokes the power under Section 13 of SARFAESI Act. Authorised Officer, Indian Overseas Bank & Anr. v. Ashok Saw Mill (2009) 8 SCC 366, followed.   2020 SCeJ 142

 

 

(ii) Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI) – Section 13(2) - Action taken by the Banks under the SARFAESI Act is neither unquestionable nor treated as sacrosanct under all circumstances but if there is discrepancy in the manner the Bank has proceeded it will always be open to assail it in the forum provided.   2020 SCeJ 142

 

 

Criminal Procedure Code, 1973 (CrPC) – Section 482 – Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI) – Section 13(2)  - Petitioner-Loanee after dismissal of the application under section 17 of the Sarfaesi Act, before the DRT filed the impugned criminal complaint against the bank and its officers and the auctIon purchaser alleging that the sale of the mortgaged property has been carried out fraudulently for a much lower value in connivance with each other – The criminal complaint appears to be an intimidatory tactic and an afterthought which is an abuse of the process of law - Quashed.  Held,  in the matter of present nature if the grievance as put forth is taken note and if the same is allowed to be agitated through a complaint filed at this point in time and if the investigation is allowed to continue it would amount to permitting the jurisdictional police to redo the process of Sarfaesi wherein application has been dismissed by the DRT, DRAT and the writ by the High Court and which would be in the nature of reviewing the order passed by the learned Single Judge and the Division Bench in the writ proceedings by the High Court and the orders passed by the competent Court under the SARFAESI Act which is neither desirable nor permissible and the banking system cannot be allowed to be held to ransom by such intimidation. Therefore, the present case is a fit case  wherein the extraordinary power is necessary to be invoked and exercised. 2020 SCeJ 142