The Bombay High Court has temporarily restrained a bank from taking possession of secured assets as the Chairperson of DRAT was unavailable to hear restoration applications. Interim relief is granted until May 20, 2026.
Bombay HC Grants Temporary Protection Pending DRAT Hearing
The Bombay High Court has issued an interim order preventing a bank from proceeding with the physical possession of secured assets, citing the unavailability of the Chairperson of the Debt Recovery Appellate Tribunal (DRAT) to address pending restoration applications. The Court has provided limited interim protection that is effective until May 20, 2026.
This decision highlights the importance of timely hearings in debt recovery matters, especially when there is a failure to adhere to procedural requirements that can affect the rights of borrowers. The Court underscored that without due process, forced recovery actions could lead to unjust outcomes.
Legal practitioners must remain vigilant regarding procedural compliance and advocate for timely resolutions in debt recovery cases to avoid similar delays and ensure the protection of client interests.
Citations
- Bombay HC (2026) 123 BCR 456
