In Brief
Borrowers challenged SARFAESI Act enforcement proceedings initiated by a bank for recovery of a defaulted loan. The High Court held that while it lacks jurisdiction to examine the legality of SARFAESI orders under binding Supreme Court precedent, it could facilitate an alternative resolution where both parties consent. The Court ordered the borrowers to pay the overdue amount of ₹3,00,000 in eight equal monthly instalments along with regular EMI payments. Non-compliance would vacate all benefits and allow the bank to proceed with enforcement measures. The writ petition was allowed on this constructive basis.
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