Use the remedies provided under SARFAESI Act, petition not valid: Supreme Court

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New Delhi, Jan 12 (PTI) The Supreme Court on Wednesday said that borrowers affected by the process initiated by a bank or an asset reconstruction company (ARC) under the SERCI Act will have to take recourse to the judicial remedies available under the Act and any Writ petition will not be entertained.

A bench of Justice MR Shah and Justice BV Nagarathna made the observation while setting aside the order of the Karnataka High Court. The High Court had ordered status quo to be maintained with respect to the attached properties of the borrowers.

In this case, the Supreme Court, referring to an earlier order, said that filing of writ petitions in the High Court on behalf of the borrowers under Article 226 of the Constitution is an abuse of the process of the court.

The bench said, “If any borrower is aggrieved by the commencement of the process under the Financial Asset Securitization and Reconstruction and Securities Enforcement Act (SARFAESI), 2002, he should go through the judicial remedies provided under this Act, without any writ on it.” The petition should not be entertained.”

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