SARFAESI Recovery Not Subject to National Trust Committee Approval for Disabled Ward’s Property

Kerala High Court Ruling on SARFAESI Recovery

The Kerala High Court has clarified that recovery proceedings under the SARFAESI Act are not mandated to obtain approval from the National Trust when dealing with properties belonging to disabled wards. This decision allows petitioners the liberty to approach the Debt Recovery Tribunal (DRT) for appropriate relief.

In this case, the court examined the need for the National Trust's involvement in such recoveries and concluded that it would delay the recovery process unnecessarily. The SARFAESI Act provides a framework for financial institutions to recover debts from defaulting borrowers, and the need for additional layers of approval was deemed inefficient.

The court emphasized that while the welfare of disabled individuals is paramount, the procedural requirements laid out in the SARFAESI Act must be followed to facilitate timely recoveries. The judgment asserts that financial institutions can operate within the stipulated legal framework without additional regulations.

“The approval by the National Trust is not a prerequisite for SARFAESI proceedings,” stated the court.

This ruling has significant implications for creditors and financial institutions regarding the recovery of dues from properties owned by disabled persons, streamlining the process and reducing bureaucratic hurdles.