Introduction
A secured creditor’s right to enforce security interests under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) is well-established in Indian jurisprudence. However, questions frequently arise as to the appropriate forum available to an aggrieved auction purchaser when the enforcement process goes awry.
The Punjab and Haryana High Court, in its recent decision in Devi Hospitality Pvt. Ltd. v. Punjab National Bank & Anr., has authoritatively settled this question. The Court reaffirmed that the Debt Recovery Tribunal (“DRT”) under Section 17(1) of the SARFAESI Act is the exclusive and efficacious forum for redressal of such grievances, to the exclusion of writ jurisdiction under Article 226 of the Constitution of India.
