In Brief
A bank challenged High Court orders directing it to accept a borrower's settlement offer in five or twelve installments for loans declared non-performing assets. The Supreme Court did not disturb the relief granted but clarified the law on writ jurisdiction. The Court held that High Courts should not entertain writ petitions challenging SARFAESI Act recovery actions when effective statutory remedies exist through the Debt Recovery Tribunal. Borrowers must exhaust statutory remedies before invoking writ jurisdiction. The Court deprecated High Courts' continued interference in banking recovery matters despite the Tribunal being functional, which frustrates the SARFAESI Act's purpose and harms financial institutions. The appeals were disposed with directions to High Courts to exercise greater caution in such matters.
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