Legal Question in Banking Law in

SARFAESI ACT

Sir,

My question is:

After being declared defaulter by the bank, we have filed the case in high court seeking clarification on some critical issues about the case and the said case is pending in the High court since one year.

Q> Can bank proceed with its further proceedings to issue possession letter etc.. in spite of the fact that the case is pending in high court and BOTH THE PARTIES (bank and the borrower) have already appeared in some of its hearings

Q2. Is there any recent SC judgement that restricts the right of HC to hear such cases? If it is so, can HC reject the case in spite of the fact that it is pending before it since last 1.5 yrs??

pls help.

Sincere thanks in advance


Asked on 9/28/10, 12:26 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

If there is no stay by High Court, the bank can proceed with its SARFAESI proceedings.

2. In the recent case relating to United Bank of India, delivered on 26.7.2010, the Supreme court has decided that where there is statutory appeal or remedy under the SARFAESI Act or any other special law, the High court should not interfere by way of writ. No matter that the case is pending in High court, the same applies to that case also and can be dismissed on that ground

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Answered on 9/29/10, 7:20 pm


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