Madras High Court Issues Statewide Directions For Timely Disposal Of SARFAESI Pleas Seeking Aid In Taking Possession

The Madras High Court on Friday issued a comprehensive set of statewide directions governing applications under Section 14 of the SARFAESI Act. The Court observed that delays by designated authorities defeat the legislation's objective of enabling expeditious recovery of secured assets and reducing non-performing assets (NPAs). Section 14 of the SARFAESI Act enables banks and other secured creditors to seek the assistance of a Chief Metropolitan Magistrate, Chief Judicial Magistrate or...

Madras High Court Upholds Forfeiture of 25% Bid Amount in SARFAESI Auction Case

On 4 June, the Madras High Court dismissed a writ petition and held that a defaulting auction purchaser cannot claim refund of the 25% deposit when he repeatedly fails to pay the balance sale consideration despite extensions, and the rules permit forfeiture of the amount in such circumstances. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan rejected Kamal's challenge to the order of the DRAT Chennai, which had upheld the dismissal of his...

Delhi High Court Refuses To Restore LOC Against SSK Trading Directors In Bank Fraud Case

On 4 June, the Delhi High Court dismissed Bank of Baroda's appeal and upheld a 21 January 2026 order of a Single Judge that had quashed a Look Out Circular (LOC) issued against Surender Kumar Bansal and another director of SSK Trading Pvt. Ltd. in a bank fraud and loan default case, subject to conditions requiring them to cooperate with the criminal trial and obtain prior permission before travelling abroad. A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia...

S.138 NI Act Case Cannot Fail For Non-Examination Of Authorised Representative: Calcutta High Court

The Calcutta High Court on 20 May held that a complaint under Section 138 of the Negotiable Instruments Act, 1881 cannot be rejected solely on the ground that the complainant's original authorised representative was not examined, where the court could have exercised powers under Section 311 CrPC to summon the witness and ensure a just decision. Justice Ajoy Kumar Mukherjee allowed the appeal filed by Shriram Transport Finance Co. Ltd. and set aside the judgment dated 27 August 2021 passed by...

DRT Competent To Order Release Of Title Documents After Loan Settlement: Allahabad High Court

On 4 June, the Allahabad High Court held that the Debts Recovery Tribunal (DRT) can decide applications seeking release of title documents from a bank after full repayment of a loan. Borrowers cannot invoke writ jurisdiction for release of such documents when an effective remedy is available before the DRT. A Division Bench of Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary dismissed a writ petition filed by R.S. Contractors and Engineers against Canara Bank, holding that the petitioners...

Pre-Deposit Under SARFAESI Can Be Based On Creditor's Claim If DRT Has Not Determined Debt: Kerala HC

On 2 June, the Kerala High Court held that where the Debts Recovery Tribunal (DRT) has not determined the debt due from a borrower, the pre-deposit required for maintaining an appeal under Section 18 of the SARFAESI Act can be computed on the basis of the amount claimed by the secured creditor. A Division Bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M. allowed Canara Bank's appeal in part against a Single Judge's order on the computation of pre-deposit for a SARFAESI...

Writ Petition Not Maintainable Against Private ARC Enforcing Security Interest: Madras High Court

On 2 June, the Madras High Court dismissed a writ petition challenging a pre-sale auction notice issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and held that Article 226 jurisdiction does not extend to a private Asset Reconstruction Company (ARC) enforcing contractual rights, and that the borrower must approach the Debts Recovery Tribunal (DRT). The Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and...

Cheque Dishonour Notice Must Specify Amount Demanded, Else No Valid Notice In Eye Of Law: Kerala High Court

The Kerala High Court has held that a statutory demand notice issued in a cheque dishonour case must specifically mention the amount demanded, failing which there would be no legal notice in the eye of law. “Only when the notice is specific about the amount, it is possible for the recipient of the notice to pay the amount which was specifically asked for to avoid penal consequences,” the Court observed. Justice A Badharudeen made the observation while dismissing an appeal filed against the...

Technical Glitch Could Have Misled Bidder; Kerala High Court Directs Central Bank To Refund Auction Deposit

The Kerala High Court has upheld a direction requiring the Central Bank of India to refund money deposited by an auction participant after finding that an admitted technical glitch could have led her to believe that her bid had not been accepted. A Division Bench of Chief Justice Soumen Sen and Justice Syam Kumar V.M. passed the order while partly allowing an appeal filed by the Bank against a Single Judge's decision directing a refund of the amount deposited by the auction participant and...

Non-Borrower Tenants Need Not Make Pre-Deposit Before Filing Appeal Before DRAT: Karnataka High Court

The Karnataka High Court has held that a tenant or other non-borrower cannot be compelled to make a pre-deposit to maintain an appeal against a Debt Recovery Tribunal order under the SARFAESI Act. It held that the requirement applies only to borrowers. A Division Bench of Justice Suraj Govindaraj and Justice K Manmadha Rao said the statute draws a clear distinction between borrowers and non-borrowers in prescribing conditions for appeal. “Once the appellant is admittedly not a borrower within...

Delhi High Court Directs SpiceJet To Disclose Assets In Sunbird France Plea To Enforce ₹84 Crore Foreign Decree

The Delhi High Court on Tuesday directed SpiceJet Ltd to file an affidavit disclosing its assets within three weeks in proceedings initiated by France-based aircraft lessor Sunbird France 02 SAS. Sunbird is seeking enforcement of a foreign decree of around ₹84 crore passed by the England & Wales Commercial Court against the airline. Justice Vikas Mahajan recorded the consent of the parties. He directed that, without prejudice to their rights and contentions, SpiceJet shall file the...

Himachal Pradesh HC Quashes Cheque Bounce Case Against Society Signatory, Directs Society Impleadment

The Himachal Pradesh High Court has held that an authorised signatory of a society cannot be prosecuted under Section 138 of the Negotiable Instruments Act for dishonour of a cheque issued from the society's account unless the society itself is arraigned as an accused. Justice Sandeep Sharma quashed a complaint filed by Kuldeep Singh against Parveen Rajput, holding that a complaint against an authorised signatory alone is not maintainable when a cheque is issued on behalf of a society that has...