Mr. Justice Ashutosh J. Shastri

Whether for payment of compensation specified in Section 19 of SARFAESI Act, 2002 a prayer has to be sought for in the application filed under Section 17 of the SARFAESI Act, 2002 or separate application is to be filed? – Sumankumar Dilipkumar Jha Vs. Punjab National Bank, Surat Main Branch – Gujarat High Court

Division Bench of the Hon’ble Court held that the words and expression ‘shall be entitled to the payment of such compensation and costs’ specified therein would clearly indicate that they are enabling words and it would indicate that they would only confer, power or authority and imply discretion having vested with the Tribunal to award compensation and costs to such borrower any other aggrieved person who has filed an application under Section 17 of the SARFAESI Act. The expression ‘shall be entitled to the payment of such compensation and costs’ found in Section 19 would indicate that they are used in the statute to indicate something that may be done by the Tribunal while adjudicating an application under Section 17. A power conferred by a statute having regard to its object cannot be treated as power simpliciter, but it is a power coupled with a duty or so it is the duty of the Tribunal to make sure that where it arrives at a conclusion that the measures taken by the secured creditors is invalid or contrary to the provisions of the SARFAESI Act, then necessarily the Tribunal has to make an order for payment of such compensation and costs as may be determined. When a statute confers an authority to do a judicial act in such case, it is imperative on those so authorised to exercise authority; it is in this background that Section 19 will have to be examined.

Whether for payment of compensation specified in Section 19 of SARFAESI Act, 2002 a prayer has to be sought for in the application filed under Section 17 of the SARFAESI Act, 2002 or separate application is to be filed? – Sumankumar Dilipkumar Jha Vs. Punjab National Bank, Surat Main Branch – Gujarat High Court Read Post »

Scroll to Top