Bank Proceeded with Auction of property under SARFAESI Act, 2002 and Failure to Follow Court's Direction is misusing Process : DRAT Dismisses Appeal

The Debt Recovery Appellate Tribunal (DRAT) has dismissed an appeal, ruling that a bank misuses the legal process by proceeding with property auction under the SARFAESI Act, 2002, while failing to follow specific court directions. This decision holds financial institutions accountable for adhering to judicial directives during debt recovery. While SARFAESI grants powers for asset recovery, these powers are subject to court oversight. The ruling indicates that a bank's non-compliance with court orders, even when exercising statutory powers, constitutes an abuse of process. This ensures that debt recovery measures are conducted strictly within established legal and judicial boundaries, protecting debtors' rights.