AGARWAL TRACOM PVT. LTD. versus PUNJAB NATIONAL BANK & ORS.

AGARWAL TRACOM PVT. LTD. versus PUNJAB NATIONAL BANK & ORS.

The action of forfeiting the deposit by the secured creditor is a measure under Section 13(4) read with Rule 9(5) of the Security Interest (Enforcement) Rules, 2002. The auction purchaser is 'any person' under Section 17(1) of SARFAESI Act and therefore entitled to challenge such action before the DRT. Writ petitions should not be entertained when an effective alternative statutory remedy is available.

Parties
Appellant: Agarwal Tracom Pvt. Ltd.; Respondents: Punjab National Bank & Ors.
Jurisdiction
India
Judgment Date
27 November 2017
Procedural Posture
Civil Appeal / Final Judgment on Appeal From Dismissal of Writ Petition
Outcome
Appeal dismissed
Legal Topics
SARFAESI Act, Remedies Under Section 17, Forfeiture of Deposit by Auction Purchaser, Alternative Remedy, Jurisdiction of Writ Court
Banking Law Debt Recovery Administrative Law SARFAESI Act Remedies Under Section 17 Forfeiture of Deposit by Auction Purchaser Alternative Remedy Jurisdiction of Writ Court

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Parties

Agarwal Tracom Pvt. Ltd.

Appellant

Punjab National Bank & Ors.

Respondents

Procedural Posture

Civil Appeal / Final Judgment on Appeal From Dismissal of Writ Petition

Legal Issues

  1. 1 Whether the remedy of an auction purchaser aggrieved by forfeiture of deposit by a secured creditor under SARFAESI Act lies before the DRT under Section 17 or through writ petition under Article 226/227 of the Constitution

Ratio Decidendi

The action of forfeiting the deposit by the secured creditor is a measure under Section 13(4) read with Rule 9(5) of the Security Interest (Enforcement) Rules, 2002. The auction purchaser is 'any person' under Section 17(1) of SARFAESI Act and therefore entitled to challenge such action before the DRT. Writ petitions should not be entertained when an effective alternative statutory remedy is available.

Court Disposition

Appeal dismissed

Orders

  • Appellant is granted liberty to file an application before the DRT under Section 17(1) of SARFAESI Act within 45 days from the date of this order.
  • DRT to decide such application on its merits in accordance with law, uninfluenced by observations made by Supreme Court and High Court.