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Delhi HC held that a lender cannot get extra Section 9 relief if mortgage security exists and SARFAESI enforcement is pending, absent proof of immediate asset threat. The decision affects banks seeking arbitration interim relief alongside loan remedies.
The Delhi High Court held a writ petition maintainable against an ARC for alleged fraud in security-interest creation, despite SARFAESI’s remedy. It directed exclusion of the petitioner’s one-third share from the e-auction.
A pending SARFAESI appeal or criminal case cannot block mutation, as the Orissa HC held mutation proceedings fiscal and do not affect title. The court restored rights and ordered the Tahasildar to correct the Record of Rights within two weeks.
The Madhya Pradesh High Court quashed a writ court’s direction to the Debt Recovery Tribunal to expedite SARFAESI proceedings, ruling that such a directive oversteps jurisdiction when borrowers retain the statutory remedy under Section 17(6) of the SARFAESI Act. The decision reinforces that writ jurisdiction cannot be used to fast-track recovery actions, preserving the borrower’s right to challenge dues before the DRT or appellate tribunal.
Bombay High Court reaffirms that mortgages created before RERA's enactment remain immune to state auction proceedings under the Act, unless fraud or collusion is proven. The ruling grants interim protection to secured creditors, preventing state authorities from auctioning properties already mortgaged prior to RERA's implementation, reinforcing the supremacy of pre-existing security interests.
Gauhati HC reaffirms that Section 34 CPC limits interest on delayed refunds of auction bid amounts to 6%, even after a seven-year delay, unless parties agree otherwise. The ruling underscores the statutory cap's applicability in SARFAESI proceedings, impacting banks and bidders in recovery disputes.
Madras High Court directs Debts Recovery Tribunal to decide pending SARFAESI application within three months, reinforcing timely adjudication under recovery laws.