GAGAN SONI Vs. AU SMALL FINANCE BANK LIMITED

JUDGEMENT

(1.) The present petition is filed by the borrower under Article 226 of the Constitution of India challenging the proceedings and order dtd. 23/12/2025 passed by the Competent Authority under Sec. 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (in short 'the SARFAESI Act').

(2.) Counsel for the petitioner argued that by the said impugned order for taking over the possession, the Competent Authority has appointed the Advocate of the bank, which is violative of principle of natural justice. She further argued that the procedure adopted by the respondents for taking over the possession is in violation of Fundamental Rights under Articles 14 and 21 of the Constitution of India.

(3.) Admittedly, the petitioner is a borrower and against whom the secured creditor has taken the proceeding under Sec. 14 of the SARFAESI Act. It is also not in dispute by counsel for the petitioner that an order has already been passed under Sec. 14 of the SARFAESI Act. It is established that the proceedings under Sec. 14 of the SARFAESI Act is not of adjudicatory nature and therefore, the hearing to the borrower is not required.