Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
DRT limited to Adjudicating Recovery u/s 13(4) of SARFAESI, cannot decide on Property Ownership or Validity of Sale/Mortgage: Supreme Court
The Supreme Court has ruled that Debt Recovery Tribunals (DRTs) are only authorized to adjudicate recovery under Section 134 of the SARFAESI Act and cannot decide on issues related to property ownership or the validity of property sale or mortgage. The judgment emphasized that matters related to the title of property and the validity of mortgage-related transactions must be resolved through the civil courts and not through DRT proceedings. This decision clarifies the jurisdiction of DRTs and reinforces the importance of proper legal processes for property disputes, separate from recovery actions initiated under SARFAESI.