The amount outstanding u/s 31(j) of SARFAESI Act, 2002 would be the principal amount and interest as per the books of account of the secured creditor and the total amount due after the discharging of the liability up to 80% by the debtor would fall within the purview of Sec. 31(j) – IFCI Factors Ltd. v. Patil Construction and Infrastructure Pvt. Ltd. & Ors. – DRAT Mumbai

DRAT Mumbai held that:
(i) An application under Sec. 17(1) of the SARFAESI Act is just like a suit and all contentious issues arising therein will have to be answered by the D.R.T. The D.R.T. cannot dispose of the S.A. on a preliminary finding even without there being a pleading about such contention in the S.A.
(ii) Definition of ‘amount outstanding’ under the 5th proviso to Sec. 13(9) of SARFAESI Act applied on section 31(j).
(iii) The appeal is allowed and the impugned judgment of the DRT is set aside.

The amount outstanding u/s 31(j) of SARFAESI Act, 2002 would be the principal amount and interest as per the books of account of the secured creditor and the total amount due after the discharging of the liability up to 80% by the debtor would fall within the purview of Sec. 31(j) – IFCI Factors Ltd. v. Patil Construction and Infrastructure Pvt. Ltd. & Ors. – DRAT Mumbai Read Post »