SHYCY SANTHOSH Vs. HDFC HOUSING FINANCE

JUDGEMENT

(1.) The protective prescripts of Section 31(j) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act ('the SARFAESI Act' for brevity) are spotlighted in these writ petitions, with the petitioners attempting to unleash it, as a shield against the action initiated against them under the said Act by the respondent Financial Institution for recovery of certain amounts allegedly due to them.

(2.) The petitioners predicate that since the amounts due from them are below the threshold of 20% of the principal sun and interest thereon, no such recovery is permissible under the rigor of the afore Section and they thus challenge the recovery proceedings as being non-est in law, contending that they are, therefore, entitled to assail it before this court under Article 226 of the Constitution of India, without having to invoke their alternative statutory remedies.

(3.) These two writ petitions require to be considered together because the necessitous and vital issues presented in them are homologous and also because they have been filed by the same persons, who concede that they have availed certain loan facilities from the respondent Financial Institution.