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Kerala High Court dismisses a writ petition challenging DRT orders, ruling that fraud allegations require evidence and must be adjudicated before the Debt Recovery Appellate Tribunal (DRAT) under the RDB Act. The court reaffirms that bypassing the statutory appeal mechanism is impermissible, even in cases of alleged fraud.
The Supreme Court ruled that a recovery certificate issued by the Debt Recovery Tribunal under the RDB Act does not qualify as a 'decree or order' under Section 9(2) of the Presidency Towns Insolvency Act, 1909. This strict interpretation bars creditors from initiating insolvency proceedings based solely on recovery certificates, reinforcing the need for a formal decree or order for insolvency notices.
The Karnataka High Court has held that borrowers challenging SARFAESI Act notices - including possession and auction orders - must first exhaust their statutory remedy before the Debt Recovery Tribunal under Section 17. Invoking Article 226 to bypass this exclusive remedy undermines the legislative intent of streamlined debt recovery and leaves borrowers without the tribunal’s specialized expertise.
Bombay High Court rules that the 50% pre-deposit requirement under Section 18(1) of the SARFAESI Act applies universally to all appeals against DRT orders, including those challenging condonation of delay. The judgment overturns prior DRAT orders waiving the deposit and declares earlier contrary rulings per incuriam, reinforcing strict compliance with statutory pre-deposit norms for borrowers and secured creditors.
Bombay High Court reaffirms that borrowers must exhaust the statutory remedy under Section 17 of the SARFAESI Act before approaching writ courts, dismissing a petition challenging a Section 14 order. The ruling reinforces the Supreme Court's stance in Celir LLP and Satyawati Tandon, limiting judicial intervention where alternative remedies exist.
Madhya Pradesh High Court holds that possession warrants under SARFAESI Act cannot be enforced while a securitization application is pending before DRT, preserving status quo until adjudication.