Is a Writ Petition Maintainable Against Actions Taken Under Section 14 of the SARFAESI Act When an Alternative Remedy Exists?

The Calcutta High Court reiterated that writ jurisdiction under Article 226 should not be exercised to challenge proceedings initiated under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where an efficacious alternative remedy is available. This judgment consolidates the established legal position and is binding authority within West Bengal for banking and financial sector disputes involving SARFAESI actions.

 

Summary

Category Data
Case Name WPA/22369/2019 of MOUSUMI CHETIA Vs UCO BANK & ORS
CNR WBCHCA0492092019
Date of Registration 29-11-2019
Decision Date 01-09-2025
Disposal Nature DISMISSED
Judgment Author HON’BLE JUSTICE PARTHA SARATHI CHATTERJEE
Court Calcutta High Court
Bench Single Judge (Justice Partha Sarathi Chatterjee)
Precedent Value Binding precedent for maintainability issues within jurisdiction
Type of Law Administrative Law / Banking Law (SARFAESI Act)
Questions of Law Whether writ jurisdiction can be invoked to challenge actions of District Magistrate under Section 14 of the SARFAESI Act despite the availability of an alternative statutory remedy.
Ratio Decidendi
  • The court held that a writ petition under Article 226 of the Constitution of India is not maintainable to challenge the action taken by the District Magistrate under Section 14 of the SARFAESI Act due to the existence of an efficacious alternative remedy.
  • The petition was therefore dismissed at the threshold.
  • No argument was advanced as the petitioner was not represented at the hearing.
  • The underlying rationale remains the restraint imposed on the writ jurisdiction where alternative remedies exist.
  • No costs were imposed.
Facts as Summarised by the Court
  • The writ petition challenged the action of the District Magistrate under Section 14 of the SARFAESI Act.
  • No one appeared on behalf of the petitioner at the hearing.
  • The court identified the existence of an alternative statutory remedy as the ground for non-interference.

Practical Impact

Category Impact
Binding On All subordinate courts within the jurisdiction of the Calcutta High Court
Persuasive For Other High Courts considering maintainability of writ petitions challenging SARFAESI actions under Section 14

What’s New / What Lawyers Should Note

  • The court restated and applied the bar on writ jurisdiction under Article 226 when a detailed statutory remedy exists for actions taken under Section 14 of the SARFAESI Act.
  • Highlights the necessity for aggrieved parties to exhaust alternative remedies prior to invoking writ jurisdiction.
  • Dismissal at the threshold for want of maintainability can occur even if the petitioner is absent on the date of hearing.

Summary of Legal Reasoning

  • The challenge in the writ petition pertained to the action of the District Magistrate under Section 14 of the SARFAESI Act.
  • The court, noting the absence of the petitioner, nonetheless proceeded to examine the maintainability of the petition.
  • Citing the existence of an efficacious alternative remedy (prescribed procedure under the SARFAESI Act itself), the court dismissed the writ petition without going into the merits.
  • The decision aligns with the judicial restraint typically shown by High Courts in interfering with matters where statutory remedies are provided.

Arguments by the Parties

Petitioner

  • No arguments presented as the petitioner or counsel was not present at the hearing.

Respondent

  • No arguments noted in the text of the judgment.

Factual Background

The writ petition was filed to challenge the action taken by the District Magistrate under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. At the time of hearing, the petitioner was unrepresented. The court considered the issue of maintainability based on the legal position regarding alternative remedies and dismissed the petition accordingly.

Statutory Analysis

  • The relevant provision analyzed was Section 14 of the SARFAESI Act, which empowers the District Magistrate to assist secured creditors in taking possession of secured assets.
  • The court’s reasoning was that the SARFAESI Act provides its own remedy, precluding writ jurisdiction under Article 226 in such cases.

Dissenting / Concurring Opinion Summary

None; the judgment was delivered by a single judge without dissent or concurrence.

Procedural Innovations

  • The court proceeded to consider the maintainability at the threshold even in the absence of the petitioner, demonstrating that courts may dismiss writ petitions ex parte when fundamental legal bars (such as existence of alternative remedy) are evident.

Alert Indicators

  • ✔ Precedent Followed – The judgment reaffirms the established legal principle barring writ petitions where statutory remedies exist.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Comments

No comments to show.