2019 (4) TMI 884 - PUNJAB AND HARYANA HIGH COURT

Dishonor of Cheque - default in repayment of loan - Auction - Section 17(1) of the SARFAESI Act - Held that:- Section 17(1) of the SARFAESI Act makes it clear that the measures contemplated under Section 13(4) of the Act provide continuity to the cause of action. In the present case, against the action of the respondent Bank in accepting the only bid and confirming the sale, the petitioners have an alternative effective remedy of filing an application under Section 17 of the SARFAESI Act.

In the present case, since the action taken by the respondent- Bank in auctioning the residential house in question on account of default in repayment of the loan, was in continuation of the measures provided under Section 13(4) of the Act, the petitioners have an alternative effective remedy of filing an application under Section 17 of the Act. The petitioners instead of availing that remedy, have approached this Court under Article 226 of the Constitution of India.

Petition dismissed - decided against petitioner.