Statutory remedy under SARFAESI bars writ challenge to auction and sale measures unless exceptional grounds are shown.

Measures taken in continuation of enforcement action under Section 13(4) of the SARFAESI Act are ordinarily challengeable before the Debts Recovery Tribunal under Section 17. Where an effective statutory remedy exists against auction and confirmation of sale of a secured asset, the High Court should not invoke writ jurisdiction under Article 226 unless exceptional grounds are shown to bypass the statutory forum. As no such exceptional circumstance was made out, the writ petition was held not maintainable and the aggrieved parties were relegated to the alternative remedy.

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Issues: (i) Whether the writ petition challenging the auction and confirmation of sale of the secured asset was maintainable in view of the statutory remedy under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Analysis: The impugned measures were taken in continuation of the enforcement action under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Act provides a complete mechanism for a person aggrieved by such measures to approach the Debts Recovery Tribunal under Section 17. The writ jurisdiction under Article 226 is ordinarily not to be invoked when an effective alternative statutory remedy is available, particularly in matters arising from recovery by banks and financial institutions. The petitioners' grievance could therefore be examined by the statutory forum, and no exceptional circumstance was made out to bypass that remedy.

Conclusion: The writ petition was not maintainable and the petitioners were relegated to the alternative remedy under Section 17 of the Act.

Final Conclusion: The challenge to the auction proceedings was declined in writ jurisdiction because the statutory appellate mechanism under the SARFAESI Act had to be pursued first.

Ratio Decidendi: Where an effective statutory remedy is available against measures taken under Section 13(4) of the SARFAESI Act, the High Court should ordinarily not entertain a writ petition unless exceptional grounds justify bypassing the statutory forum.

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