#DRT proceedings

The Bombay High Court struck down a bank's possession attempt under SARFAESI for failing to provide a full 15-day notice and denying borrowers the mandatory 72-hour window to file urgent applications before the DRT. This ruling reinforces that procedural fairness under Article 21 is non-negotiable in enforcement actions, affecting all secured creditors relying on mechanical notice compliance.

Andhra Pradesh High Court mandates Debt Recovery Tribunal to adjudicate a borrower's challenge to NPA classification before proceeding with auction, reinforcing that erroneous NPA declarations cannot be ignored. The ruling stays auction finalization until the DRT decides the pending application within three weeks, protecting borrowers from coercive recovery based on flawed asset classification.

Madras High Court quashes an ex parte possession order under SARFAESI Act, ruling that secured creditors cannot take physical possession of a borrower's property without notice while DRT proceedings are pending. The court directed the borrower to deposit Rs. 14,94,138 and mandated expeditious disposal of the DRT application, reinforcing the principles of natural justice in secured asset enforcement.