Aggrieved borrowers should file a challenge against a SARFAESI Act auction before the Debt Recovery Tribunal (DRT) under Section 17, not the High Court initially. The DRT has exclusive jurisdiction to address procedural irregularities, illegalities, or fraud in the sale. High Court intervention is generally restricted to exceptional circumstances, such as violation of fundamental rights or if the DRT is unavailable, typically after exhausting statutory remedies. [1, 2, 3, 4, 5] 


Key Considerations for Challenging an Auction:

• Forum: The primary legal remedy is a Securitisation Application (SA) filed under Section 17 of the SARFAESI Act before the DRT.
• Grounds for Challenge: Common grounds include improper valuation of the property (not obtaining a fresh valuation, for example, this HP High Court case mentions (https://indiankanoon.org/doc/59271511/)), failure to provide proper notice of sale, or flaws in the auction procedure.
• Interim Relief: While filing the application in DRT, the borrower can apply for a stay on the auction.
• High Court Role: The High Court usually directs parties back to the DRT, as the Act provides a specific legal remedy. A Writ Petition to the High Court is generally only considered if there is a gross violation of fair procedure or if an appeal is made against a final DRT order to the DRAT.
• Timeline: It is critical to act immediately upon receiving notices under Section 13(2) or 13(4) or the sale notice. [1, 2, 3, 4, 6] 

Disclaimer: This information is for general guidance only and does not constitute legal advice. It is recommended to seek expert legal counsel regarding your specific case.

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[1] https://www.raizadaassociates.com/blog/stay-on-bank-auction-in-delhi-sarfaesi-act/
[2] https://mahendrabhavsar.com/supreme-court-clarifies-drts-jurisdiction-over-secured-asset-possession-disputes/
[3] https://legalfirm.in/how-to-challenge-a-sarfaesi-action-before-drt-chennai-bench-insight/
[4] https://www.linkedin.com/pulse/how-challenge-drt-order-joginder-singh-rohilla-4taqf
[5] https://www.casemine.com/judgement/in/56090799e4b0149711168c14
[6] https://indiankanoon.org/doc/59271511/

HighCourt DRT Lawyers Chandigarh