Writ petition not maintainable against proceedings by banks: SC

The Supreme Court on Wednesday said borrowers, aggrieved by proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI) 2002 by the bank or the assets reconstruction company (ARC), have to avail the remedy under this law and no writ petition would be maintainable.

The apex court held this while vacating the order passed by the Karnataka High Court (HC) which had directed maintenance of status quo with regard to possession of mortgaged properties subject to the borrowers making a payment of Rs 1 crore with the ARC concerned.

A bench of Justices M R