The Madras High Court dismissed a writ petition challenging an NBFC's SARFAESI auction and directed the borrower to approach the Debt Recovery Tribunal.
Madras HC Rejects Writ Against NBFC’s SARFAESI Auction
The Madras High Court has dismissed a writ petition challenging the auction conducted by a Non-Banking Financial Company (NBFC) under the SARFAESI Act, instructing the petitioner to address their grievances before the Debt Recovery Tribunal (DRT) within a specified timeframe.
The court reiterated the deliberate intent of the SARFAESI Act, which incentivizes recovery through established tribunals rather than through civil litigation. The petitioner was guided to pursue their challenges formally within the DRT framework instead of the High Court.
This decision emphasizes the judiciary's preference for channeling financial disputes through designated mechanisms, effectively reinforcing the importance of understanding the jurisdictional boundaries that govern recovery processes in financial litigation.
Citations
- Writ Petition No. 321/2026 (Madras HC)
