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2019 (1) TMI 827 - HC - Indian LawsMaintainability of application - filing of securitization application before DRT without losing physical possession - Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - whether on issuance of notice under Section 13(4) of the 2002 Act, the borrower or any other person aggrieved of the action initiated there under can take recourse to Section 17 of the 2002 Act by filing an application thereunder without losing symbolic or physical possession of the secured asset? Held that:- The issue involved in the present writ petitions is no longer res integra. The Supreme Court in M/s Hindon Forge Pvt. Limited’s case [2018 (11) TMI 498 - SUPREME COURT OF INDIA], against the judgment rendered by the Full Bench of the Allahabad High Court had adjudicated similar proposition - it was held that a securitization application under Section 17(1) of the 2002 Act is maintainable only when actual/physical possession is taken by the secured creditor or the borrower loses actual/physical possession of the secured assets. Further, once the right to approach DRT matures and securitization application under Section 17(1) is filed by the borrower, it is open to the DRT to deal with the same on merits and pass appropriate orders in accordance with law. The remedy available under Section 17(1) of the Act challenging proceedings under Section 13(4) of the 2002 Act would be available without losing symbolic or physical possession - the borrower or any other aggrieved person would be entitled to invoke the jurisdiction of the DRT under Section 17(1) of the 2002 Act on issuance of notice under Section 13(4) of the said Act. Petition allowed - The matter is remitted to the DRT to decide the application under Section 17 of the 2002 Act afresh on merits in accordance with law.
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