Can Lawyers Issue Notices For Seizing Of Assets Under The Securitization Act?

In a far reaching judgment in the case of Sampoorna Battu vs. ICICI Bank & Anr., a Division Bench of the Andhra Pradesh High Court has quashed a notice issued by a lawyer on behalf of a financial institution, for seizing assets of a defaulting loan payer. Issuance of such notice by the advocate was declared as being null and void and ultra vires the provisions of the Securitization Act.

The question that came up for consideration of the court in the said case was whether an advocate of a bank / financial institution can be treated as an "authorized officer" for the purpose of Section 13(2) read with Section 13(12) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('Securitization Act') and the Rules 2(a) and (b) of the Security Interest (Enforcement) Rules, 2002 ("the Rules").