CWP-5443-2023 IN THE HIGH COURT OF PUNJAB AND HARYANA Karam Chand Cholamandalam Investment & Finance Company Ltd. CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON'BLE MS. JUSTICE RAMESH KUMARI Present: SHEEL NAGU, CHIEF JUSTICE 1. demand notice dated 17.06.2022 (Annexure P of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, possession notice dated (4) of the SARFAESI Act properties, which was scheduled to be held on 30.03.2023. 2. order dated 29.03.2023 restrained the respondent auction of the secured asset of the petitioner 2023 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Karam Chand Versus Cholamandalam Investment & Finance Company Ltd. CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON'BLE MS. JUSTICE RAMESH KUMARI Mr. Rajesh Bhatheja, Advocate, for the petitioner. Mr. Sahil Khunger, Advocate, for the respondents. **** SHEEL NAGU, CHIEF JUSTICE ( Oral ) The present petition filed by the borrower assails not only the demand notice dated 17.06.2022 (Annexure P of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, “SAFRAESI Act”) possession notice dated 02.09.2022 (Annexure P (4) of the SARFAESI Act, besides challenging e properties, which was scheduled to be held on 30.03.2023. This Court, while taking cognizance of the matter, order dated 29.03.2023 restrained the respondent auction of the secured asset of the petitioner -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-5443-202 Date of decision : 22.08.2025 …….Petitioner Cholamandalam Investment & Finance Company Ltd. and others ...….Respondents CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON'BLE MS. JUSTICE RAMESH KUMARI , Advocate, Sahil Khunger, Advocate, ( Oral ) The present petition filed by the borrower assails not only the demand notice dated 17.06.2022 (Annexure P-2) issued under Section 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement 2002 (for short, “SAFRAESI Act”), but also (Annexure P-3) issued under Section 13 , besides challenging e-auction of his mortgaged properties, which was scheduled to be held on 30.03.2023. Court, while taking cognizance of the matter, vide interim order dated 29.03.2023 restrained the respondent – Bank from proceeding with auction of the secured asset of the petitioner - borrower, subject to his 2023 .2025 …….Petitioner ...….Respondents The present petition filed by the borrower assails not only the 2) issued under Section 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement , but also ) issued under Section 13 auction of his mortgaged vide interim Bank from proceeding with borrower, subject to his NAROTAM DASS 2025.08.26 10:13 I attest to the accuracy and authenticity of this order/judgment CWP-5443-2023 depositing Rs. 25 lakhs and also continuing to basis in future. 3. deposited by the petitioner instalments in the loan account have not been paid. 4. which interim order to restrain the respondent Bank from holding auction was passed, has not been complied with by the petitioner the interim order dated 29.03.2023 does not exi 5. refrain from interfering under Article 226 of the Constitution in SARFAESI proceedings. The SARFAESI Act is a complete code, which not only provides for a detailed reco Recovery Tribunal (DRT) and thereafter, Debts Recovery Appellate Tribunal (DRAT). 6. under the SARFAESI Act against the impugned notices, esp notice dated 02.09.2022 (Annexure P SARFAESI Act, as well as recourses adopted by the respondent pursuant thereto. 7. for continuation of interim order dated 29.03.2023 of default of the petitioner to comply with the condition, subject to which the interim relief was granted way back in March, 2023. 2023 depositing Rs. 25 lakhs and also continuing to basis in future. It is informed that though the amount of Rs. 25 lakhs was deposited by the petitioner – borrower, but thereafter, instalments in the loan account have not been paid. In view of the above, it is obvious that the condition, subject to which interim order to restrain the respondent Bank from holding auction was passed, has not been complied with by the petitioner the interim order dated 29.03.2023 does not exi The Apex Court has consistently held that High Courts should refrain from interfering under Article 226 of the Constitution in SARFAESI proceedings. The SARFAESI Act is a complete code, which not only provides for a detailed recovery mechanism but also remedies before the Debts Recovery Tribunal (DRT) and thereafter, Debts Recovery Appellate Tribunal This Court, therefore, relegates the petitioner to avail remedy under the SARFAESI Act against the impugned notices, esp notice dated 02.09.2022 (Annexure P-3) issued under Section 13 (4) of the SARFAESI Act, as well as recourses adopted by the respondent pursuant thereto. The prayer made by learned counsel for the petitioner inuation of interim order dated 29.03.2023 of default of the petitioner to comply with the condition, subject to which the interim relief was granted way back in March, 2023. -2- depositing Rs. 25 lakhs and also continuing to pay the instalments on regular hough the amount of Rs. 25 lakhs was borrower, but thereafter, since May, 2023, instalments in the loan account have not been paid. above, it is obvious that the condition, subject to which interim order to restrain the respondent Bank from holding auction was passed, has not been complied with by the petitioner – borrower and, therefore, the interim order dated 29.03.2023 does not exist in the eyes of law. The Apex Court has consistently held that High Courts should refrain from interfering under Article 226 of the Constitution in SARFAESI proceedings. The SARFAESI Act is a complete code, which not only provides very mechanism but also remedies before the Debts Recovery Tribunal (DRT) and thereafter, Debts Recovery Appellate Tribunal This Court, therefore, relegates the petitioner to avail remedy under the SARFAESI Act against the impugned notices, especially possession 3) issued under Section 13 (4) of the SARFAESI Act, as well as recourses adopted by the respondent – Bank The prayer made by learned counsel for the petitioner – borrower inuation of interim order dated 29.03.2023 cannot be granted, in view of default of the petitioner to comply with the condition, subject to which the interim relief was granted way back in March, 2023. pay the instalments on regular hough the amount of Rs. 25 lakhs was since May, 2023, above, it is obvious that the condition, subject to which interim order to restrain the respondent Bank from holding auction was borrower and, therefore, The Apex Court has consistently held that High Courts should refrain from interfering under Article 226 of the Constitution in SARFAESI proceedings. The SARFAESI Act is a complete code, which not only provides very mechanism but also remedies before the Debts Recovery Tribunal (DRT) and thereafter, Debts Recovery Appellate Tribunal This Court, therefore, relegates the petitioner to avail remedy ecially possession 3) issued under Section 13 (4) of the Bank borrower cannot be granted, in view of default of the petitioner to comply with the condition, subject to which the NAROTAM DASS 2025.08.26 10:13 I attest to the accuracy and authenticity of this order/judgment CWP-5443-2023 8. liberty. August 22, 2025 narotam Whether speaking/reasoned Whether reportable 2023 Accordingly, the petition stands disposed of with August 22, 2025 Whether speaking/reasoned Whether reportable -3- Accordingly, the petition stands disposed of with the aforesaid ( SHEEL NAGU ) CHIEF JUSTICE ( RAMESH KUMARI ) JUDGE Yes/No Yes/No the aforesaid NAROTAM DASS 2025.08.26 10:13 I attest to the accuracy and authenticity of this order/judgment