Facts
The petitioners challenged the Debts Recovery Tribunal, Chennai’s dismissal of their S.A. challenging a sale certificate.
Source reference: p. 2They appealed to the Debt Recovery Appellate Tribunal (DRAT), Mumbai, which was in charge of the Chennai DRAT while its Presiding Officer was on leave.
Source reference: p. 2Along with the appeal, they sought waiver, an urgent hearing and interim relief.
Source reference: p. 2The DRAT rejected their request for an urgent hearing, reasoning that the appeal arose from the dismissal of a challenge to the sale certificate.
Source reference: p. 5–6The petitioners then invoked Article 227 of the Constitution to challenge that rejection and sought urgent consideration of their interim applications, citing a threat of dispossession.
Source reference: p. 2, 5–6Issues
1. Whether the DRAT’s rejection of the petitioners’ request for an urgent hearing was liable to be set aside, given their stated apprehension of dispossession.
Source reference: p. 4–62. Whether the DRAT should be directed to consider the petitioners’ interim application on its merits.
Source reference: p. 5–6Law Applied
The petition was brought under Article 227 of the Constitution, which provides for the High Court’s supervisory jurisdiction over subordinate courts and tribunals.
Source reference: p. 2The Court’s stated approach was that the merits of a request for interim relief are for the DRAT to determine on the application before it; where an applicant alleges a threat of dispossession, the tribunal should afford an urgent hearing and consider the application on its merits, without the High Court prejudging the outcome.
Source reference: p. 5–6Section 14 of the SARFAESI Act arose in the parties’ submissions concerning the possession warrant, but the Court did not rely on it to decide the revision.
Source reference: p. 3–4Reasoning
The Court confined its review to the refusal of an urgent hearing and did not address the merits of the appeal or the petitioners’ entitlement to interim relief.
Source reference: p. 4It found the DRAT’s stated reason—that the appeal concerned dismissal of a challenge to a sale certificate—insufficient to dispose of the urgency request.
Source reference: p. 5–6In light of the petitioners’ stated apprehension of dispossession, the DRAT should permit the appeal to proceed subject to consideration of the waiver application and determine the interim application on its merits.
Source reference: p. 5–6The Court left those determinations to the DRAT and expressed no view on their outcome.
Source reference: p. 6Holding
The High Court set aside the DRAT, Mumbai’s order dated 23 September 2026 rejecting the request for an urgent hearing.
It directed the DRAT to consider the petitioners’ application on its merits after affording an urgent hearing, and stated that the tribunal should take up the proceedings promptly upon the petitioners’ request accompanied by a copy of the order.
Source reference: p. 6The revision petition was disposed of without an order as to costs; the interim applications were closed.
Source reference: p. 6Acts & Sections Cited
1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 20021
Original Court PDF
M/s.D and A Corporate Residency Pvt LtdvsThe Authorized officer
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Original judgment, available to read, download and summarize on LawLens.in
