Paramhans and another Vs Religare Housing Development Finance Corporation and others (Punjab and Haryana High Court)
The Punjab and Haryana High Court has directed borrowers to use statutory remedies under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), rather than approaching the High Court directly. In the case of Paramhans and another Vs Religare Housing Development Finance Corporation and others, the petitioners had challenged a notice issued under Section 13(4) of the SARFAESI Act. The court, citing several Supreme Court precedents, declined to intervene.
The court referenced decisions from the Supreme Court, including United Bank of India vs. Satyawati Tondon, Phoenix Arc Private Limited vs. Vishwa Bharati Vidya Mandir, and PHR Invent Educational Society vs. UCO Bank. These precedents emphasize that the SARFAESI Act is a comprehensive code with its own recovery procedures and remedies through the Debt Recovery Tribunal (DRT) and Debt Recovery Appellate Tribunal (DRAT). The High Court’s ruling underscores that it should not interfere in matters where a specific statutory remedy is available, thereby reinforcing the established legal framework for debt recovery. The petition was disposed of with the directive that the petitioners should approach the appropriate tribunal.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
