Case Note & Summary
The petitioner, V.Nisha, filed a writ petition under Article 226 of the Constitution of India before the Madurai Bench of the Madras High Court, seeking to quash a possession notice dated 20.12.2024 issued by the first respondent, the Authorized Officer of ICICI Bank Limited. The possession notice was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The petitioner was represented by Mr.G.Mohankumar, while respondents 1 and 2 were represented by Mr.S.Krishna, Standing Counsel. The court, comprising Justice M.S.Ramesh and Dr. Justice A.D.Maria Clete, heard the matter at the admission stage with the consent of both sides. The court observed that an effective alternative remedy lies before the Debts Recovery Tribunal (DRT) under Section 17 of the SARFAESI Act, and therefore, invoking the writ jurisdiction of the High Court under Article 226 is not permissible. Consequently, the writ petition was dismissed, granting the petitioner liberty to work out her remedies in accordance with law before the DRT. No order as to costs was made, and the connected miscellaneous petition was closed. The judgment was delivered on 07.01.2025.
Headnote
A) Banking Law - SARFAESI Act - Alternative Remedy - Writ Jurisdiction - Possession Notice - The petitioner challenged a possession notice dated 20.12.2024 issued by ICICI Bank under the SARFAESI Act. The court held that since an effective remedy lies before the Debts Recovery Tribunal under Section 17 of the SARFAESI Act, invoking Article 226 jurisdiction is not permissible. The writ petition was dismissed with liberty to the petitioner to approach the DRT. (Paras 2-3)
Issue of Consideration
Whether a writ petition under Article 226 of the Constitution of India is maintainable against 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 lies before the Debts Recovery Tribunal (DRT).
Final Decision
The writ petition was dismissed with liberty to the petitioner to work out her remedies in accordance with law before the Debts Recovery Tribunal. No order as to costs. The connected miscellaneous petition was closed.
Law Points
- Alternative remedy
- Writ jurisdiction
- SARFAESI Act
- Debts Recovery Tribunal
- Possession notice
