#Bank Loan Recovery

Andhra Pradesh High Court reaffirms that writ petitions under Article 226 challenging SARFAESI Act proceedings must be dismissed if the Debts Recovery Tribunal (DRT) provides an efficacious alternative remedy. The ruling underscores judicial restraint, preventing bypass of statutory mechanisms for debt recovery disputes.

The Allahabad High Court has mandated a structured, court-supervised repayment plan for defaulted bank loans, staying all coercive recovery actions and conditioning waiver of statutory charges on complete repayment. This sets a precedent for debtor-friendly relief in civil debt recovery, balancing bank interests with constitutional principles of proportionality and fair procedure.