The Supreme Court (SC) stated last week a borrower and his guarantors who have been served with a notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act has a remedy under the Act and should not rush to the high court. In this case, Kanaiyalal vs State of Maharashtra, State Bank of India advanced loans against mortgage of certain property. The loan was declared as non-performing asset and the bank proceeded to take over the mortgaged property. The guarantors moved the Bombay high court against the bank’s move. It rejected the petition stating they had tried to avail of the remedy earlier by moving the debt recovery tribunal.
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