Case Note & Summary
The petitioner, M/s. Vibgyor Texotech Ltd., filed a writ petition before the Bombay High Court challenging a possession notice dated 11.5.2018 issued by the Circle Officer, Mandvi, Taluka Vasai, District Palghar, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The notice scheduled possession of the secured asset on 5.6.2018. The petitioner also sought a declaration that no amount was due to the respondent bank, State Bank of India. The respondents, including the bank and its authorized officer, opposed the petition on the ground of maintainability, arguing that the petitioner had an alternative statutory remedy under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal (DRT). The court, after hearing the parties, held that the writ petition was not maintainable as the petitioner had not exhausted the alternative remedy available under the SARFAESI Act. The court observed that the petitioner could approach the DRT for appropriate relief. Consequently, the petition was dismissed with liberty to the petitioner to file an application under Section 17 of the SARFAESI Act before the DRT within four weeks. The court clarified that if such an application is filed, the DRT shall decide it on its own merits without being influenced by the dismissal of the writ petition. The court also directed that no coercive action be taken against the petitioner for a period of four weeks to enable the petitioner to approach the DRT.
Headnote
A) Constitutional Law - Writ Jurisdiction - Alternative Remedy - Maintainability - SARFAESI Act, 2002, Section 17 - Petitioner challenged possession notice under SARFAESI Act without exhausting statutory remedy under Section 17 before DRT - Court held that writ petition is not maintainable as alternative efficacious remedy is available - Petitioner directed to approach DRT for relief (Paras 1-5).
Issue of Consideration
Whether the writ petition challenging the possession notice under the SARFAESI Act is maintainable when the petitioner has an alternative statutory remedy under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal.
Final Decision
Writ petition dismissed with liberty to petitioner to file application under Section 17 of SARFAESI Act before DRT within four weeks; no coercive action for four weeks.
Law Points
- Alternative remedy
- SARFAESI Act
- writ jurisdiction
- possession notice
- maintainability
