M/S HINDON FORGE PVT. LTD. vs THE STATE OF UTTAR PRADESH THR. DISTRICT MAGISTRATE GHAZIABAD

The Supreme Court upheld the Full Bench judgment of the Allahabad High Court regarding the maintainability of an application under Section 17(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act). The Court clarified that such an application is only maintainable after measures under Section 13(4) have been taken by banks/financial institutions. It emphasized that the borrower must be given clear notice before the sale of secured assets and that the Debt Recovery Tribunal (DRT) has jurisdiction to pass orders on applications under Section 17(1) after such measures are taken.