M/S Hindon Forge Pvt. Ltd. vs The State Of Uttar Pradesh Thr. District ...

The Supreme Court clarified the maintainability of applications under Section 17(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act), stating that such applications can only be filed after measures under Section 13(4) are taken by banks or financial institutions. The Court emphasized that borrowers must be informed of the reasons for rejection of their objections and that they have the right to approach the Debt Recovery Tribunal (DRT) within 60 days after measures are taken. The judgment reinforces the procedural safeguards for borrowers while affirming the powers of banks to take possession of secured assets without court interference.