SARFAESI tenancy disputes must be taken to the Debts Recovery Tribunal when Section 17 provides an effective remedy.

Under the amended SARFAESI framework, tenancy or leasehold claims against a secured asset can be examined by the Debts Recovery Tribunal in an application under Section 17, including whether the tenancy has expired, been determined, conflicts with Section 65A of the Transfer of Property Act, breaches the mortgage terms, or was created after the Section 13(2) notice. Because this statutory remedy was available and efficacious, the High Court held that writ jurisdiction should ordinarily not be invoked to bypass it, and the petitioners were directed to pursue the Section 17 remedy before the Tribunal.

---

---

Issues: Whether a writ petition challenging measures taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, by persons claiming tenancy rights in the secured asset was maintainable when the amended Section 17 provides an appellate remedy before the Debts Recovery Tribunal.

Analysis: The amendment inserting Section 17(4A) expressly empowered the Debts Recovery Tribunal, in an application under Section 17, to examine tenancy or leasehold claims and to determine whether the tenancy had expired, stood determined, was contrary to Section 65A of the Transfer of Property Act, 1882, was contrary to the terms of mortgage, or was created after the notice under Section 13(2). The Court noted that these questions could be raised before the Tribunal with evidence, and that the availability of this statutory remedy required the petitioners to pursue that forum. Reliance was placed on the settled principle that the High Court should not ordinarily entertain a writ petition where an efficacious alternative remedy is available.

Conclusion: The writ petition was not entertained on merits and the petitioners were relegated to the remedy of appeal before the Debts Recovery Tribunal under Section 17.

Ratio Decidendi: Where the SARFAESI Act, as amended, provides an efficacious appellate forum to adjudicate tenancy or leasehold claims against secured assets, writ jurisdiction should ordinarily not be invoked to bypass that statutory remedy.

---