#Secured Asset

Madhya Pradesh High Court rules that a non-functional Debt Recovery Tribunal (DRT) does not deprive borrowers of interim relief under the SARFAESI Act. The Court stayed coercive action pending appeal, directing the borrower to deposit Rs. 35 lakhs and ensuring expeditious hearing, reinforcing natural justice in asset possession disputes.

J&K High Court rules that a borrower’s right to redeem secured assets under Section 13(8) of the SARFAESI Act is extinguished once the auction notice is published, even if the sale is yet to be completed. The ruling upholds the finality of the auction process and protects bona fide purchasers who have paid in full and taken possession.

Kerala High Court holds that repossession of a vehicle under finance lease cannot proceed without considering petitioner's willingness to pay in instalments and capacity to earn.

Bombay High Court holds that third parties, including auction purchasers, cannot be compelled to make mandatory pre-deposits under Section 18 of SARFAESI Act unless they are borrowers or guarantors.