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No Application Can Be Filed Against Taking ‘Symbolic Possession’ Before DRT

The full bench of Allahabad High Court, in M/s N.C.M.L. Industries Ltd. through Director and another Vs. Debts Recovery Tribunal, Lucknow and others, has held that taking “symbolic possession” or issuance of possession notice, meeting with any resistance, cannot be treated as “measure”/s taken under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and, therefore, the borrower at that stage cannot file an application under Section 17(1) before DRT.

The original writ petition was filed challenging the order of DRAT, wherein it had allowed bank’s appeal and held that Application under Section 17 of the Act is not maintainable as only “symbolic possession” was taken by the Bank. DRT order restraining the bank from taking physical possession of the secured assets during the pendency of the securitisation application was set aside by DRAT.

Article referred: http://www.livelaw.in/no-application-can-filed-taking-symbolic-possession-drt-allahabad-hc-fb-read-judgment/

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