In Brief
The State Bank of Travancore's appeal challenged a High Court interim order staying possession proceedings under the SARFAESI Act after the respondent defaulted on a loan declared NPA. The Supreme Court held that the High Court should not have entertained a writ petition under Article 226 when effective statutory remedies existed under the SARFAESI Act (appeal to Debt Recovery Tribunal under Section 17). The Court reaffirmed that writ jurisdiction is discretionary and must be exercised judiciously; interim relief staying bank recovery actions, which impact financial stability, requires special reasons and cannot be granted ex-parte. The petition was deemed not bona fide but designed to stall recovery. The interim order was set aside and the appeal allowed.
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