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Issues: (i) Whether the Debts Recovery Tribunal's jurisdiction under section 17 of the SARFAESI Act extends to measures taken by the secured creditor after the stage of section 13(4), including sale and transfer of secured assets. (ii) Whether the appeal against the order in review was maintainable.
Issue (i): Whether the Debts Recovery Tribunal's jurisdiction under section 17 of the SARFAESI Act extends to measures taken by the secured creditor after the stage of section 13(4), including sale and transfer of secured assets.
Analysis: The statutory scheme, as amended in 2004, shows that section 17 is not confined to a narrow challenge to physical possession alone. Any person, including the borrower, may apply against measures taken under section 13(4), and the Tribunal must examine whether those measures conform to the Act and the Rules. The Tribunal is empowered, upon finding non-compliance, to declare the recourse invalid and restore possession or management. The amended provisions therefore provide a full remedial check on post-section 13(4) action, including sale transactions flowing from such measures.
Conclusion: The Tribunal does have jurisdiction to scrutinise post-section 13(4) measures and to set aside such action, including restoration of possession or status quo ante, where warranted.
Issue (ii): Whether the appeal against the order in review was maintainable.
Analysis: The appellants themselves invoked the appellate jurisdiction after the review order. Having done so, they could not later contend that the appeal was incompetent on the ground that it arose from a review proceeding. The objection was treated as of no practical consequence in the circumstances.
Conclusion: The objection to maintainability was rejected.
Final Conclusion: The High Court's decision was upheld and the challenge to the secured creditor's post-possession action failed.
Ratio Decidendi: Section 17 of the SARFAESI Act authorises the Debts Recovery Tribunal to examine, invalidate, and grant restorative relief against measures taken under section 13(4), including subsequent sale or transfer actions arising from those measures.
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