S.D. CERAMICS LLP Vs. NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LTD.

JUDGEMENT

(1.) Challenge in the writ petition filed under Article 226 of the Constitution of India is to the action of the respondent in initiating the proceedings by issuing notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets Enforcement of Security Interest Act, 2002 ("SARFAESI Act").

(2.) Perusal of the writ petition shows that the petitioners have defaulted in repayment of the loan amounting to Rs. 18,38,11,324/- (Rupees eighteen crores thirty eight lakhs eleven thousand three hundred twenty four).

(3.) They have approached this Court when alternative remedy under the provisions of SARFAESI Act is available to them. The Apex Court in the case of Union Bank of India v. Satyawati Tondon: (2010) 8 SCC 110 held that where an alternative effective remedy was available to the aggrieved person, the High Court should not ordinarily entertain the writ petition under Article 226 of the Constitution. Paras 43, 44 and 45 read as under:-