In Brief
Kotak Mahindra Bank sought to recover a debt of over Rs 29.5 lakh originally extended by SBI to a proprietorship firm. After the debtor defaulted and defaulted on a 21-year DRT decree (2000–2021), the Bank initiated recovery under the SARFAESI Act. The borrower challenged this in multiple proceedings, culminating in a writ petition dismissed by the High Court's Single Judge with exemplary cost. The Division Bench then granted ex-parte interim relief staying dispossession, and when the Bank appealed to the Supreme Court, the borrower withdrew the Letters Patent Appeal while seeking to retain the interim relief and nullify the Single Judge's observations. The Supreme Court held the Division Bench's order unjustified: writ petitions against SARFAESI proceedings are not maintainable without exhausting statutory remedies; granting interim relief after 35 years of dilatory litigation was improper; and permitting withdrawal while extending relief and nullifying observations amounted to abuse of process.",
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