Supreme Court Refuses To Entertain Petition Challenging SARFAESI Condition Of Pre-deposit To Appeal Before DRAT

The Supreme Court on June 26 declined to issue a notice on a petition filed by a Company Director challenging the validity of the 50% pre-deposit requirement for appeals to the Debt Recovery Appellate Tribunal (DRAT) under Section 18 of the SARFAESI Act. \r

The petitioner argued that this condition was arbitrary and violated natural justice principles, as it imposed an undue burden on borrowers who might only be in default for a small percentage of their loan amount. The Court noted that the petitioner had alternative remedies, including approaching the Bombay High Court under Article 226 of the Constitution. Additionally, the petitioner's company had previously filed a similar petition. \r

Thus, the Court refused to entertain the petition under Article 32, stating that the petitioner could seek recourse through the High Court.