Power under SARFAESI Act can have disastrous consequences on borrowers; DRT must apply mind while passing interim order: Kerala High Court

Justice Gopinath P said that Debt Recovery Tribunals must be cognizant of the fact that the powers conferred under the SARFAESI Act are drastic, which can have disastrous consequences for the borrower.
Kerala HC, Justice Gopinath P
Kerala HC, Justice Gopinath P

The Kerala High Court recently held that Debt Recovery Tribunals (DRT) should apply their mind with reference to the contentions taken before it while granting even interim orders on applications moved under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) [Jimmy Thomas v Indian Bank].

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