In Brief
The Supreme Court clarified that a borrower may file an application to the Debts Recovery Tribunal under section 17 of the SARFAESI Act at the stage when a symbolic/constructive possession notice is issued under rule 8(1) and 8(2) of the 2002 Rules—not only when actual physical possession is taken. The Court held that rule 8 prescribes two distinct modes of taking possession: symbolic possession (rule 8(1)–8(2)) and actual physical possession (rule 8(3)). Both constitute measures under section 13(4) triggering the DRT remedy. The Full Bench judgment requiring borrowers to wait for actual physical possession was overruled as it would defeat the Act's purpose of providing quick recourse against wrongful enforcement action. The Court declared borrowers can approach the DRT immediately upon issue of possession notice to challenge non-compliance with statutory procedures.
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