Rajasthan HC dismisses Writ Petition against SARFAESI proceedings

The Rajasthan High Court dismissed a Writ Petition challenging the Debts Recovery Tribunal’s (DRT) rejection of a stay application in proceedings under the SARFAESI Act, 2002. 

The petitioner, a bona fide purchaser, claimed no charges were found during due diligence, but the respondent initiated recovery after the loan default and declared the account an NPA. The Respondents alleged fraud and initiated criminal proceedings.

Justice Jhingan held that statutory remedies under SARFAESI should be exhausted before invoking writ jurisdiction, reiterating the Supreme Court’s guidance in Union of India v. Satyawati Tondon (2010). The Court emphasized the prohibition of parallel remedies.