Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) – Sections 14, 17, 29, 30 and 32; Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS Act) – Section 223 – This case involves a petition to quash a private complaint filed under Section 223 of the BNSS Act, alleging offenses under Sections 237, 303, 316(1)(5), and 318(4) of the BNS, 2023 against bank officials involved in SARFAESI Act proceedings. The complainant, a borrower, claimed that the bank sold a secured property for a lesser amount through e-auction, suspecting collusion, and without taking possession under Section 14 of the SARFAESI Act.
The petitioners, bank officials, argued that the complaint was an abuse of process as the borrower did not challenge the sale under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal (DRT). The court noted that the sale under Chapter-III of the SARFAESI Act was not challenged, and merely alleging a lower sale price does not automatically constitute an offense.