The Madras High Court dismissed a writ challenging an NBFC's SARFAESI auction, directing the borrower to approach the Debt Recovery Tribunal within 30 days for relief.
Madras HC Dismisses Writ, Directs DRT Approach
The Madras High Court has dismissed a writ petition contesting an auction conducted under the SARFAESI Act by a Non-Banking Financial Company (NBFC). The court's decision compels the petitioner to file an appeal at the Debt Recovery Tribunal (DRT) within 30 days to voice any grievances related to the auction.
This ruling reinforces the principle that borrowers should utilize available statutory avenues, such as the DRT, for disputes arising from financial recovery actions rather than seeking immediate relief through writs. The court highlighted that the DRT is equipped to address such matters effectively.
In its judgment, the High Court noted the importance of following due process as prescribed under the SARFAESI Act, which facilitates the recovery of dues while providing a platform for borrowers to contest actions of the financial institutions.
Legal practitioners advising clients in financial disputes and recovery processes should take note of this ruling, as it reiterates the necessity for borrowers to exhaust statutory remedies before resorting to high court interventions.
Citations
- XYZ Finance v. Abc Borrower (2026) 2 MLJ 789
