A bank has instituted an application in the DRT for recovery of a debt against its constituent. Can it…
The Supreme Court recognises DRT recovery and SARFAESI measures as complementary remedies. A pending recovery application does not itself prevent section 13 security…
Choose your answer
A bank has instituted an application in the DRT for recovery of a debt against its constituent. Can it also take measures under Section 13 of the SARFAESI Act in respect of an immovable property mortgaged as security for the same debt?
Answer and explanation
Correct answer A
The Supreme Court recognises DRT recovery and SARFAESI measures as complementary remedies. A pending recovery application does not itself prevent section 13 security enforcement; statutory enforcement conditions still apply and the creditor cannot recover the debt twice.
Option feedback
Option A
DRT recovery and SARFAESI measures may coexist, subject to statutory enforcement requirements.
Option B
No special RBI permission is required merely because a DRT application is pending.
Option C
RBI ratification is not a condition for this coexistence of remedies.
Option D
Pendency of recovery proceedings alone does not bar SARFAESI action.
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Delhi Higher Judicial Service