Writ Jurisdiction Can't Be Invoked When Party Has Already Approached DRT Under SARFESI Act : Delhi High Court

The Delhi High Court ruled that a writ petition under Article 226 of the Constitution cannot be invoked when the Debt Recovery Tribunal (DRT) is already examining a One-Time Settlement (OTS) proposal between a borrower and a bank.

The bench dismissed the plea of a borrower who challenged the classification of his account as a Non-Performing Asset (NPA) and claimed violation of RBI guidelines.

The Court held that since the DRT was already seized of the matter and deliberating on the OTS, the High Court should not intervene using its writ jurisdiction.