Madras High Court Dismisses Writ Petition Challenging Possession Notice Under SARFAESI Act Due to Availability of Alternative Remedy Before Debts Recovery Tribunal. Petitioner directed to approach DRT under Section 17 of SARFAESI Act, 2002 as writ jurisdiction under Article 226 is not permissible when effective alternative remedy exists.

High Court: Madras High Court
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Case Note & Summary

The petitioner, Abdul Rahuman, filed a writ petition under Article 226 of the Constitution of India before the Madurai Bench of the Madras High Court seeking a writ of certiorari to quash a possession notice dated 26.11.2024 issued by the second respondent, TATA Capital Housing Finance Ltd., through its Authorized Officer/Branch Manager. The possession notice was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The petitioner contended that the notice was arbitrary and illegal. The court, comprising Justice M.S.Ramesh and Justice A.D.Maria Clete, observed that an effective remedy lies before the Debts Recovery Tribunal (DRT) under Section 17 of the SARFAESI Act. Relying on the principle that writ jurisdiction under Article 226 should not be invoked when an alternative statutory remedy is available, the court dismissed the writ petition. However, the court granted liberty to the petitioner to pursue remedies before the DRT in accordance with law. The court also closed the connected miscellaneous petitions and made no order as to costs. The judgment was delivered on 09.01.2025.

Headnote

A) Constitutional Law - Writ Jurisdiction - Alternative Remedy - Availability of effective remedy before Debts Recovery Tribunal under Section 17 of SARFAESI Act, 2002 - Petitioner challenged possession notice dated 26.11.2024 issued by TATA Capital Housing Finance Ltd. under SARFAESI Act - Court held that invoking Article 226 is not permissible when an effective alternative remedy exists - Writ petition dismissed with liberty to approach DRT (Paras 2-3).

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Issue of Consideration

Whether a writ petition under Article 226 of the Constitution of India is maintainable to challenge a possession notice issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) when an alternative remedy before the Debts Recovery Tribunal is available.

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Final Decision

The writ petition was 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 were closed.

Law Points

  • Alternative remedy
  • Writ jurisdiction
  • SARFAESI Act
  • Possession notice
  • Debts Recovery Tribunal
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Case Details

2025 LawText (MAD) (01) 323

W.P.(MD)No.786 of 2025 and W.M.P.(MD)Nos.509 to 511 of 2025

2025-01-09

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

S.Maya Perumal

Abdul Rahuman

Reserve Bank of India, Authorized Officer / Branch Manager, TATA Capital Housing Finance Ltd., Rasu

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India seeking certiorari to quash a possession notice issued under the SARFAESI Act.

Remedy Sought

Petitioner sought quashing of possession notice dated 26.11.2024 issued by the second respondent.

Filing Reason

Petitioner challenged the possession notice as arbitrary and illegal.

Issues

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

Submissions/Arguments

Petitioner argued that the possession notice was arbitrary and illegal. Respondents likely argued that the petitioner should approach the Debts Recovery Tribunal as an alternative remedy exists.

Ratio Decidendi

When an effective alternative remedy lies before a statutory tribunal, invoking the writ jurisdiction under Article 226 of the Constitution of India is not permissible. The petitioner must exhaust the alternative remedy before approaching the High Court.

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 writ petition was filed on an unspecified date and taken up for final disposal at the admission stage by consent of both sides. The court dismissed the petition on 09.01.2025.

Acts & Sections

  • Constitution of India: Article 226
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: Section 17
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