SARFAESI Act - Right to Appeal before DRT

Overview

The Supreme Court held that borrowers have a right to appeal before the DRT under Section 17 of the SARFAESI Act even after the property has been auctioned. The Court clarified that the right to appeal is not lost merely because the property has been sold. The Court emphasized that the SARFAESI Act must be interpreted in a manner that protects the rights of borrowers and ensures that banks follow the proper procedure before taking possession of secured assets.

Key Highlights

• Right to appeal under Section 17 is available even after auction
• The DRT can consider the merits of the case
• The borrower can seek restoration of possession if the action is found illegal
• The bank's action must be in compliance with the SARFAESI Act
• Timely filing of appeal is essential

Impact

This judgement has protected the rights of borrowers who may have been unfairly treated by banks under the SARFAESI Act. It ensures that borrowers have an effective remedy even after their property has been sold. The judgement has also reinforced the importance of procedural compliance by banks, ensuring that borrowers receive fair treatment in debt recovery proceedings.

Related Laws

• SARFAESI Act, 2002 - Section 17
• Recovery of Debts and Bankruptcy Act, 1993
• Civil Procedure Code, 1908