SARFAESI writ challenge premature where borrower must first use the section 13(3A) objection mechanism.

A borrower challenging a demand notice under the SARFAESI Act must first invoke the statutory objection procedure under section 13(3A) before seeking writ relief against a notice issued under section 13(2). The objection mechanism is intended to let the borrower raise grounds including alleged non-compliance with RBI guidelines and incorrect classification of the account as a non-performing asset. Jurisdictional objections to the authorised officer's notice can also be raised within that statutory response, and the court should not interfere at that stage. On that basis, writ intervention is premature and the notice challenge is not maintainable until the borrower exhausts the section 13(3A) remedy.

---

---

Issues: Whether a writ petition challenging a notice issued under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 was maintainable before the borrower first availed the objection procedure under section 13(3A).

Analysis: The notice under section 13(2) was challenged on grounds of alleged violation of Reserve Bank of India guidelines and incorrect classification of the account as a non-performing asset. The writ court held that section 13(3A) was inserted to enable the borrower to submit objections to the demand notice and that the borrower must first respond under that statutory mechanism before seeking writ interference. It was also held that any jurisdictional objection to the authorised officer's notice could be raised in the objection under section 13(3A), and that the court should not interfere at that stage.

Conclusion: The writ petition was premature and not maintainable at that stage, and the challenge to the notice was rejected.

---