Writ jurisdiction in SARFAESI matters declined where bona fides were lacking and settlement discussions were ongoing.

Interference under Articles 226 and 227 was held unwarranted for quashing notices issued under Section 13(2) of the SARFAESI Act. The Court noted that a cheque for Rs. 30 lakhs had been produced, settlement discussions were underway, and the petitioners did not dispute dishonour of the cheque due to default of petitioner No. 1. On that record, the petitioners' bona fides were found lacking and no ground was made out for exercise of extraordinary writ jurisdiction. The writ petition was dismissed.

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Issues: Whether interference under Articles 226 and 227 of the Constitution of India was warranted to quash notices issued under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Analysis: The petitioners sought quashing of the SARFAESI notices, but the record showed that a cheque for Rs. 30 lakhs had been produced, settlement was being explored, and the petitioners did not dispute that the cheque had been dishonoured due to default of petitioner No. 1. In these circumstances, the Court found that the petitioners' bona fides were lacking and that no ground existed for invoking extraordinary writ jurisdiction.

Conclusion: Interference was declined and the writ petition was dismissed.

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