XYZ Bank vs. PQR Industries — SARFAESI Section 17 Application
Summary
Order on Section 17 application challenging possession notice issued under SARFAESI Act, examining compliance with statutory requirements.
Order Details
The applicant-borrower filed this application under Section 17 of the SARFAESI Act challenging the possession notice issued by the respondent-bank.
The applicant contended that the notice under Section 13(2) was defective as it did not comply with the mandatory requirements, and that the bank failed to consider the objections filed under Section 13(3A) within the prescribed timeframe.
The Tribunal examined the procedural compliance by the secured creditor and found that while the Section 13(2) notice was validly issued, the bank failed to communicate reasons for rejecting the borrower's objections within the prescribed period of 15 days as mandated under Section 13(3A).
The Tribunal set aside the possession notice and directed the bank to reconsider the borrower's objections in accordance with law.
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