In Brief
The Supreme Court held that a borrower can file an application under Section 17(1) of the SARFAESI Act after the secured creditor takes constructive/symbolic possession by issuing and publishing a possession notice under Rule 8(1) and 8(2) of the 2002 Rules, without waiting for actual physical possession. The Court overturned a High Court Full Bench judgment that required physical possession as a prerequisite. The judgment clarifies that multiple modes of taking possession exist under the Act: constructive/symbolic (Rule 8(1) and 8(2)) and physical (Rule 8(3)). This allows borrowers immediate recourse to the Debts Recovery Tribunal if the secured creditor breaches statutory procedures, protecting their interests while enabling banks to recover outside the court process.
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