The section addressing the submission of applications to the Court of District Judges in specific cases, as specified in Section 17A, has been excluded. This exclusion aligns with the directives of the Jammu and Kashmir Reorganization (version of principal laws) Order, 2020, as officially communicated through Notification No. S.O. 1123(E) on 18-3-2020. moreover, the Union Territory of Ladakh Reorganisation (adaptation of crucial legal guidelines) Order, 2020, has formally included this exclusion via Notification No. S.O. 3774(E) dated 23-10-2020
1. Purpose of Section 17A
Section 17A is designed to empower borrowers who feel aggrieved by actions taken by lenders under the SARFAESI Act. It establishes a legal mechanism for borrowers to appeal to the Court of the District Judge in cases where they believe their rights are being violated during the enforcement of security interests.
2. Key Provisions
Filing an Application: A borrower can make an application to the District Judge if they believe a lender has acted unlawfully in enforcing security interests. This may include actions related to the possession of secured assets or other enforcement measures.
Grounds for Application: Borrowers must specify the grounds for their application, clearly outlining how the lender's actions are unjust or in violation of the SARFAESI Act.
Jurisdiction: The District Judge has the authority to hear these applications, providing a safeguard against potential misuse of the Act by lenders.
3. Procedure for Filing the Application
Timeframe: The application must be filed within a specific timeframe set by the Act, ensuring timely resolution of disputes related to security enforcement.
Hearing and Decision: The District Judge will conduct a hearing where both the borrower and lender can present their arguments. The Judge will then make a ruling based on the evidence and submissions.
4. Implications for Borrowers
Protection of Rights: Section 17A serves as a protective measure for borrowers, allowing them to contest actions that they believe infringe upon their rights.
Legal Recourse: This provision provides borrowers with formal legal recourse, ensuring fair practices in the enforcement of security interests.
5. Impact on Lenders
Compliance: Lenders must adhere to the provisions of the SARFAESI Act to avoid challenges in court, maintaining transparency and fairness in their actions.
Judicial Review: The potential for court intervention emphasizes the importance of following legal standards when enforcing security interests.
Section 17A of the SARFAESI Act plays a critical role in balancing the interests of lenders and borrowers. By allowing borrowers to seek judicial intervention against perceived unfair actions, it promotes transparency and accountability in the enforcement process. Understanding this provision is essential for both lenders and borrowers, ensuring they navigate the recovery process effectively while upholding their respective rights and obligations.
Check out Sarfaesi Acts, 2002