Madras High Court Dismisses Writ Petition Challenging SARFAESI Order Due to Alternative Remedy Before DRT. Petitioner's Tenancy Rights Claim Must Be Raised Before Debts Recovery Tribunal Under Section 17 of SARFAESI Act, 2002.

High Court: Madras High Court
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Case Note & Summary

The petitioner, G. Vinayaga Moorthi, filed a writ petition before the Madurai Bench of the Madras High Court seeking to quash an order dated 27.07.2023 passed by the Chief Judicial Magistrate, Madurai in Cr.M.P.(MD)No.513/2023. The petitioner also sought a consequential direction to the second respondent, the Authorised Officer of PNB Housing Finance Ltd., to implead him in SARFAESI proceedings and consider his rights as a tenant in lawful possession of the scheduled property. The matter was taken up for final disposal at the admission stage by consent of both sides. The court observed that an effective alternative remedy lies before the Debts Recovery Tribunal (DRT) under the SARFAESI Act, 2002. Invoking the writ jurisdiction under Article 226 of the Constitution of India when such an alternative remedy exists is not permissible. Consequently, the writ petition was dismissed, granting liberty to the petitioner to pursue his remedies before the DRT in accordance with law. No order as to costs was made, and the connected miscellaneous petitions were closed.

Headnote

A) Constitutional Law - Alternative Remedy - Maintainability of Writ Petition - Article 226 of Constitution of India - Petitioner challenged order of Chief Judicial Magistrate under SARFAESI Act - Court held that since effective remedy lies before Debts Recovery Tribunal, invoking writ jurisdiction is not permissible - Writ petition dismissed with liberty to approach DRT (Para 3).

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Issue of Consideration

Whether a writ petition under Article 226 is maintainable when an effective alternative remedy lies before the Debts Recovery Tribunal under the SARFAESI Act.

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Final Decision

The writ petition is dismissed with liberty to the petitioner to work out his remedies before the Debts Recovery Tribunal in accordance with law. No order as to costs. Connected miscellaneous petitions are closed.

Law Points

  • Alternative remedy
  • Debts Recovery Tribunal
  • SARFAESI Act
  • Writ jurisdiction
  • Article 226
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Case Details

2025 LawText (MAD) (01) 197

W.P.(MD)No.1803 of 2025 and W.M.P.(MD)Nos.1286 & 1289 of 2025

2025-01-23

M.S. Ramesh, A.D. Maria Clete

For Petitioner: Mr. P. Venkatesan, For Respondent No.2: Mr. I. Suthakaran

G. Vinayaga Moorthi

1. The Chief Judicial Magistrate, Madurai, 2. The Authorised Officer, PNB Housing Finance Ltd., Madurai, 3. A. Pandiyammal

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Nature of Litigation

Writ petition under Article 226 of Constitution of India challenging an order passed by the Chief Judicial Magistrate under the SARFAESI Act.

Remedy Sought

Petitioner sought to quash the order in Cr.M.P.(MD)No.513/2023 dated 27.07.2023 and direct the second respondent to implead him in SARFAESI proceedings and consider his tenancy rights.

Filing Reason

Petitioner claimed lawful possession as a tenant and challenged the order of the Chief Judicial Magistrate.

Previous Decisions

The Chief Judicial Magistrate, Madurai passed an order in Cr.M.P.(MD)No.513/2023 on 27.07.2023.

Issues

Whether a writ petition under Article 226 is maintainable when an effective alternative remedy lies before the Debts Recovery Tribunal under the SARFAESI Act.

Submissions/Arguments

Petitioner argued for quashing of the order and impleadment in SARFAESI proceedings. Respondent No.2 was represented by counsel.

Ratio Decidendi

When an effective alternative remedy lies before the Debts Recovery Tribunal under the SARFAESI Act, invoking the writ jurisdiction under Article 226 of the Constitution of India is not permissible.

Judgment Excerpts

Since an effective remedy lies before the Debts Recovery Tribunal, invoking the jurisdiction of this Court under Article 226 of the Constitution of India would not be permissible and hence, the Writ Petition stands dismissed, with liberty to the petitioner to work out his remedies in accordance with law.

Procedural History

The petitioner filed W.P.(MD)No.1803 of 2025 before the Madurai Bench of Madras High Court challenging the order of the Chief Judicial Magistrate dated 27.07.2023. The court took up the matter for final disposal at the admission stage by consent of both sides and dismissed the petition on 23.01.2025.

Acts & Sections

  • Constitution of India: Article 226
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act): Section 17
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High Court Madras High Court Dismisses Writ Petition Challenging SARFAESI Order Due to Alternative Remedy Before DRT. Petitioner's Tenancy Rights Claim Must Be Raised Before Debts Recovery Tribunal Under Section 17 of SARFAESI Act, 2002.
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