Writ Petition against NBFC u/s 14(2) SARFAESI Act not maintainable: Delhi HC suggests DRT Approach

The Delhi High Court has determined that a writ petition challenging the actions of a Non-Banking Financial Company (NBFC) under Section 142 of the SARFAESI Act is not maintainable. Instead, the Court recommended that the aggrieved party should approach the Debt Recovery Tribunal (DRT) for redressal. Section 142 of the SARFAESI Act deals with the enforcement of security interests by financial institutions. The Court's decision underscores the appropriate forum for handling disputes related to the recovery of debts by NBFCs. By directing the petitioner to the DRT, the Court is ensuring that specialized tribunals, equipped to handle such cases, adjudicate on the matter, thereby maintaining the efficiency and effectiveness of legal proceedings.