Writ petitions challenging the proceedings under SARFAESI Act not maintainable: SC

The Apex court has stated that in proceedings initiated under the SARFAESI act, the borrowers will have to seek remedy under the act itself, and no separate writ petition for the same shall be entertained. A division bench of Justice MR Shah and BV Nagarathna have called this act of filing writ petitions under article 226 of the constitution by the borrowers in such cases as “Abuse of process” of the court.

The court said “If proceedings are initiated under the SARFAESI Act and/or any proposed action is to be taken and the borrower is aggrieved by any of the actions of the private bank/bank/ARC, borrower has to avail the remedy under the SARFAESI Act and no writ petition would lie and/or is maintainable and/or entertainable”.