High Court of Himachal Pradesh: A Division Bench comprising of Dharam Chand Chaudhary and Vivek Singh Thakur, JJ., dismissed a civil writ petition observing that no proceedings should be entertained against action taken under SARFAESI Act, 2002.
The petitioner Society filed the petition praying that Respondent 3 Bank be restrained from taking physical possession of petitioner’s institute under Section 13(2) and (4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
While dealing with the prayer made by the petitioner, the High Court perused the reply filed on behalf of the Respondent 3 and found that the petitioner became irregular in repayment of loan amount and it even failed to deposit the outstanding amount in its account despite opportunities granted. The petitioner failed to adhere to the terms of compromise as entered into between the parties. The Court also observed that it is a settled legal principle that no proceeding including that under Article 226 of the Constitution of India should be entertained against any action taken under the SARFAESI Act.
Accordingly, the petition was dismissed as the Court found it to be sans merit. [Awasthi Education Society v. State of H.P., 2016 SCC OnLine HP 4201, order dated 23.12.2016]