AI Structured Summary
Not yet generated for this judgment
Judgment
Sheel Nagu, CJ
The petitioner, who is borrower, has approached this Court assailing one of the recourses taken by the Financial Institution u/s 13(4) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short SARFAESI Act), in respect of the loan amount of Rs.20,66,665/-obtained sometime in 2015, wherein default took place and therefore the loan account was declared as NPA, and thereafter, SARFAESI proceedings commenced.
1.1 The averments in the petition also disclose that SA/143/2025 is already filed by the petitioner-borrower before Debts Recovery Tribunal-II, Chandigarh (‘DRT’), raising the same issue as raised herein.
Learned counsel for the petitioner submits that another attempt towards settlement and rescheduling of the loan account may be made.
2.1 However, this Court would not like to enter into the merits of the matter, since the petitioner has already availed remedy u/s 17 of SARFAESI Act by filing SA/143/2025.
The petitioner is granted liberty to raise all such contentions of proposing OTS (One Time Settlement) before the Financial Institution.
3.1. If the OTS proposal is made within ten (10) days by the petitioner, then the same shall be considered and decided by the Financial Institution in accordance with law. Till the Financial Institution decides upon the OTS proposal and passes a speaking order in that respect, dispossession of petitioner from the secured asset shall remain stayed.
3.2. The petitioner is always free to pursue the said SA/143/2025 before the DRT, in the meanwhile.
Accordingly, the writ petition stands disposed of with aforesaid liberty without commenting on merits, without cost.
Pending applications, if any, shall stand disposed of accordingly.