DRT cannot direct Bank taking action under the SARFAESI Act, 2002 to proceed against the property of the Principal Debtor before proceeding against the property of the Guarantors – Union Bank of India Vs. Satishkumar Gopalbhai Patel and Ors. – DRAT Mumbai
In the instant case, the bank had attempted to sell the principal debtor’s property multiple times and failed to get bidders to buy the property. Only thereafter did the bank proceed against the residential building of the respondents who are the guarantors. There is absolutely infirmity in such an action resorted by the bank. The DRT cannot direct the bank taking action under the SARFAESI Act to proceed against the property of the principal debtor before proceeding against the property of the guarantors. Such interference by the Tribunal in the Sarfaesi measure initiated by the bank is uncalled for and would defeat the very purpose of enacting the SARFAESI Act which contemplates recovery of the debt without interference of Courts or Tribunals.