The Delhi High Court has ruled that writ petition challenging Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) proceedings not maintainable against Non-Banking Financial Company (NBFC).
The court relied on the decision of the Supreme Court in the case of Phoenix ARC Private Limited v. Vishwa Bharati Vidya Mandir. The Supreme Court held that when specific machinery is provided under a statute, the High Court cannot exercise extraordinary jurisdiction under Article 226 & 227 of the Constitution of India.
Facts
The petitioner has availed a home loan from NBFC in terms of sanction letter dated 26.02.2022 for buying the property and they had been diligently making payment of EMIs and finally a sale deed dated 09.05.2024 was registered in his name.
The grievance of the petitioner was that out of blue, he has found notice pasted at the subject property dated 02.08.2024 by which purportedly pursuant to proceedings in the complaint case an intimation is given that the physical possession of the property shall be taken over by the respondent on 23.08.2024.
The petitioner has urged that a fraud has been played upon the petitioner inasmuch as now he has been able to secure a copy of another registered sale deed dated 23.01.2023, which would suggest that respondent, Amit Gupta and Pooja Gupta alleged to have sold the subject property to Mohd. Furkan Qureshi S/o Mr. Rahis Qureshi against whom SARFAESI proceedings have been instituted by way of complaint case No. 22032/2024 leading to order dated 26.07.204. The personal photographs of respondents are different from the sale deed which has been executed in his favour and a fraud has been practised upon him.
Conclusion
The court held that the writ petition against NBFCs cannot be entertained. The petitioner being an aggrieved party can approach the Debt Recovery Tribunal (DRT) in terms of Section 17 of the SARFAESI Act.
Case Details
Case Name: Ashish Kumar V/S Tata Capital Financial Services Ltd & Ors.
Citation: W.P.(C) 11543/2024 & CM APPL. 47866/2024
Judges: Justice Dharmesh Sharma
Court: Delhi High Court
