In Brief
A bank sought to recover a loan declared a non-performing asset from the respondent, who owed Rs. 41,82,560. After the respondent failed to pay despite notices, the bank issued a possession notice under the SARFAESI Act. The respondent filed a writ petition under Article 226, and the High Court granted an interim stay pending deposit of Rs. 3,50,000. The Supreme Court held that the High Court erred in entertaining the writ petition when effective statutory remedies (appeal before the Debt Recovery Tribunal under Section 17 of the SARFAESI Act) were available. The Court emphasized that writ jurisdiction should not bypass statutory remedies except in well-defined exceptions, and that ex-parte interim orders in financial matters require special reasons. The appeal was allowed and the interim order set aside.
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