Facts
The petitioner challenged the DRT, Madurai’s order dated 5 February 2021 rejecting, as time-barred, its application under Section 17(1) of the SARFAESI Act challenging a sale certificate issued to respondents 2–5.
Source reference: p. 2It argued that the DRT should have numbered the application and allowed it an opportunity to seek condonation under Section 5 of the Limitation Act; it also relied on authorities concerning the sale procedure and the maintainability of constitutional proceedings.
Source reference: pp. 2–4The petitioner filed this revision under Article 227 rather than an appeal under Section 18 of the SARFAESI Act.
Source reference: pp. 5–6Issues
Whether a revision under Article 227 should be entertained against the DRT’s order rejecting a Section 17 application as time-barred when an appeal under Section 18 of the SARFAESI Act is available.
Source reference: pp. 5–6Whether the High Court should determine the petitioner’s submissions concerning condonation of delay and compliance with the sale procedure, or leave those matters to the statutory appellate forum.
Source reference: pp. 2–4, 6Law Applied
Section 17 of the SARFAESI Act provides a 45-day period for an application challenging measures taken under the Act; an order made by the DRT under Section 17 may be appealed to the DRAT under Section 18 within 30 days of receipt.
Source reference: pp. 2, 4–5The Court applied the principle that the High Court will ordinarily not entertain a constitutional petition where an effective alternative remedy is available, relying on United Bank of India v. Satyawati Tondon, reported as 2010 5 L.W. 193.
Source reference: p. 5The Court also noted that the petitioner had been heard by the DRT and found no violation of natural justice.
Source reference: p. 5The authorities cited by the petitioner concerning Section 5 of the Limitation Act and the sale process were not decided on their merits.
Source reference: pp. 3–4, 6Reasoning
The DRT had heard the petitioner before rejecting its application on limitation, and the petitioner therefore had an available statutory appeal under Section 18.
Source reference: p. 5As there was no breach of natural justice and an effective appellate remedy existed, the Court declined to examine the petitioner’s arguments about condonation or the sale procedure in this Article 227 revision.
Source reference: pp. 5–6It expressed no view on whether the petitioner could still challenge the sale, noting the bank’s submission that possession had been delivered to the auction purchasers.
Source reference: p. 6Holding
The Court held that the revision was not maintainable in the circumstances because the petitioner could pursue an appeal under Section 18 of the SARFAESI Act.
It dismissed the revision without costs and granted the petitioner liberty, if so advised, to approach the appropriate appellate forum.
Source reference: p. 6Acts & Sections Cited
4 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 20023
Limitation Act, 19631
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