SARFAESI Act: Relief for late court officer’s son, HC restrains SBI from acting on debt notice

In July 2022, the SBI issued a communication, addressed to his deceased parents about the outstanding amount due that needed to be paid to prevent the mortgaged property from becoming a non-performing asset. Philip’s uncle, a priest, wrote to the bank requesting for a waiver owing to the peculiar circumstances of the case. He had maintained that there is no other earning member, Philip being a student.

Last November, the bank issued a notice under SARFAESI Act, seeking that Rs 26.09 lakh be paid within 60 days, failing which, it would exercise its rights under the Act. Subsequently, Philip’s uncle requested for a one-time settlement, with them offering to pay Rs 9-10 lakh. But this was rejected by the bank.

In the petition before HC, Philip submitted that there “hasn’t been any foul play” either by him or his family members and it is just ill luck that has led to the current situation. Seeking “sympathetic consideration” of his case, he said that they have made a second offer to the bank, offering to deposit 50 per cent of total dues but the same also was rejected.

The court of Justice Sangeeta Vishen, while issuing notice to SBI, also provided relief to Philip by restraining the bank from acting upon its November 2023 SARFAESI notice, pending final disposal of the petition. The court is due to take up the matter next on February 8 when the bank is expected to file its response to the petition.