Legal Insight + Business Instinct

Bombay High Court: Proceedings under Section 14 of SARFAESI Act do not require compliance with the principles of natural justice

Pratice Area

A Division bench of the Hon’ble Bombay High Court (HC), comprising of Hon’ble Mr. Chief Justice Dipankar Datta and Hon’ble Mr. Justice M.S. Karnik, in their judgment dated 23.03.2022 in CA Manisha Mehta & Ors. v. The Board of Directors of ICICI Bank (represented by its Managing Director) & Ors., held that the language of Section 14 of SARFAESI Act is clear and unambiguous- it does not prescribe any requirement of complying with natural justice during Section 14 proceedings before CMM/DM. The HC further observed that proceedings under Section 14 of SARFAESI Act (seeking physical possession of mortgaged assets before CMM/DM) are not independent of action taken under Section 13(4) of SARFAESI Act. Hence, if a borrower has no right of hearing when the secured creditor takes possession under Section 13(4), no hearing can be granted before CMM/DM when the borrower does not surrender possession to such creditor. However, the borrower is entitled to approach the DRT, in terms of section 17 of SARFAESI Act, on initiation of action under Section 13(4) of SARFAESI Act.

Disclaimer

By browsing this website, you agree that you are, of your own accord, seeking further information regarding Sirius Legal. No part of this website should be construed as an advertisement of or solicitation for our professional services. No information provided on the website shall be construed as legal advice.

This website has been designed only for the purposes of dissemination of basic information on Sirius Legal, as well as other information which is otherwise available on the internet, various public platforms and/or social media. Careful attention has been given to ensure that the information provided on the website is accurate and updated. However, Sirius Legal is not responsible for any reliance that a reader places on such information, and it shall not be liable for any loss or damage caused due to any inaccuracy in, or exclusion of, any information, or its interpretation thereof. In case of any legal issues, we recommend seeking legal advice.