K.J. Doraisamy v. Union of India & Ors., (2006) 4 CTC 769 (Mad HC)

 

Citation:

K.J. Doraisamy v. Union of India & Ors., (2006) 4 CTC 769 (Mad HC)

Key Legal Principles Established:

1. Strict Compliance with SARFAESI Provisions:
• Notices under Sections 13(2) and 13(4) must be properly served to all liable parties (borrowers & guarantors).
• Any defect in the notice renders the proceedings invalid.
2. Limitation and Delay in Enforcement:
• Inordinate delay in taking possession of secured assets may invalidate SARFAESI proceedings.
3. Right of the Borrower to Challenge Defective Notices:
• A borrower/guarantor can approach the Debt Recovery Tribunal (DRT) under Section 17 if there is any procedural lapse.

This case is frequently cited when challenging defective possession notices under SARFAESI, especially if:

• The guarantor’s name is missing from the notice.
• The secured asset is not properly identified.
• There is unreasonable delay in enforcement after the demand notice.