We all aware of the object behind SARFAESI Act, 2002 and it is to enable the banks to recover the debts speedily and to enable the banks to reduce NPAs. Despite lot of criticism that SARFAESI Act, 2002 is draconian law and it enables the Banks to harass the borrowers, Banks suffer to recover their dues in the absence of a special legislation like SARFAESI Act, 2002. It is for sure that no Bank can recover their dues speedily if they have to approach the
If we look at the question as to whether the borrower can dispute the outstanding due in an appeal under section 17 of SARFAESI Act, 2002, I would strongly feel that the DRT can and should look into all issues and including the dispute with regard to the validity of the claim. Upon the specific plea from the borrower with regard to the claim of the Bank, the DRT can follow its own procedure as prescribed and can give a finding. It is true that normally no Bank official will commit a mistake in arriving at the outstanding due as the Banks will be systematic in maintaining records and as they will strictly follow the guidelines prescribed by the Reserve Bank of
Note: the views expressed are my personal.