- The Supreme Court noted that Section 17 of the SARFAESI Act provides for a 45-day time limit for filing an application in order to expedite the enforcement of the security. \
- According to Section 17 of the SARFAESI Act, an application against measures to recover secured debts must be filed with the Debts Recovery Tribunal within 45 days of the date such measure was taken.
- The DRT dismissed the Section 17 application in this case because it was filed after the statutory period of limitation of 45 days had passed. It later granted the review petition filed in response to this order.
- The DRAT overturned this order, noting that no error was apparent on the face of the record for exercising the review jurisdiction.
- The DRAT order was challenged in a writ petition filed before the High Court, which stayed the DRAT order and allowed DRT to proceed with the Securitization Application.
- In an appeal, an Apex Court bench of Justices BR Gavai and PS Narasimha held that the High Court was not justified in staying the operation of the DRAT's order, which concluded that there was no error apparent on the face of the record for the DRT to invoke review jurisdiction and recall its order.
- The court observed that the reason for imposing a 45-day time limit for filing an application under Section 17 is easily deduced from the enactment's purpose and object.
- This Court held in Transcore v. Union of India and Anr. that the SARFAESI Act was enacted to expedite the enforcement of security. It is unfortunate that proceedings involving a property that has been put up for sale and third-party rights created under the Act have remained unresolved even after a decade.
- Setting aside the contested interim order, the bench directed the High Court to hear the Writ Petition as soon as possible, preferably within three months.
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