"High Court Dismisses Writ Petition Citing Alternative Remedy under SARFAESI Act"
The Allahabad High Court reinforced the judiciary's adherence to procedural propriety. The Court emphasized the principle of exhausting available statutory remedies before knocking on the door of the High Court by way of Article 226 of the Constitution of India. The writ petition was dismissed on this ground as an alternative remedy is available under the SARFAESI Act.
Kasturi Devi Sheetalaya Pvt Ltd & Another v. The Presiding Officer Debt Recovery Tribunal And Another
Writ Petition 18388/2024
Before Allahabad High Court
Heard by Hon'ble Mr. Justice Ajit Kumar, J.
Facts
The petitioners invoked the extraordinary jurisdiction of the High Court under Article 226 of the Constitution challenging the order passed by the Debt Recovery Tribunal (DRT) on a miscellaneous application arising out of a Securitization Application.
Preliminary Objection of the Bank (Bank Of India): The petitioners had an alternative and efficacious remedy to appeal before the Debt Recovery Appellate Tribunal (DRAT) under Section 18 of the SARFAESI Act, 2002.
Supreme Court Precedent: The respondent bank relied on a recent Supreme Court judgment (PHR Invent Educational Society v. UCO Bank) emphasizing that High Courts should not interfere in matters arising out of the SARFAESI Act when a special forum is prescribed.
Petitioners' Argument: The petitioners contended that an order on a miscellaneous application regarding court fees does not fall under Section 17 of the SARFAESI Act, and thus, an appeal under Section 18 is not applicable.
Issue before the Court:
Whether the High Court should entertain a writ petition under Article 226 when an alternative remedy is available under the SARFAESI Act, specifically regarding orders passed on miscellaneous applications by the DRT.
Order:
Preliminary Objection Upheld: The High Court upheld the preliminary objection of the Respondent Bank, that an alternative remedy is available.
Dismissal of Petition: The petition was dismissed on the ground of alternative remedy, with liberty granted to the petitioners to approach the appropriate appellate forum.
