Can Debts Recovery Tribunal Entertain A Claim For Less Than Rs.10 Lakhs Under SARFAESI Act? Delhi High Court Answers
Case: IDFC First Bank Limited v. Union of India and Ors.
Coram: Justices Vibhu Bakhru and Amit Mahajan
Case No.: W.P.(C) 2550/2020
Court Observation: “An application under Section 13(10) of the SARFAESI Act is not an action for enforcement of a security interest in respect of a financial asset. The nature of the said application is precisely that of the original action, which is covered under the RDB Act. However, the SARFAESI Act does not contain any express provisions, that stipulates which Debts Recovery Tribunal has the jurisdiction to decide any original claim as to the outstanding amount that remains after the secured creditor has enforced the security interest.”
“The import of the said words was to carve out an exception to the clause regarding the pecuniary jurisdiction of the Debts Recovery Tribunal”
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