Dear All, 

Very often we hear & read about the stuation wherein the borrower claims loss & damage from the bank. The quantum of this loss & damage is higher that claim of the bank under SARFAESI act, and thus leads to a "No debt due" situation for the borrower. As such the borrower is supposed to be releived from the SARFAESI proceedings. 

How sound is this arguent and any specific judgements relating to the same? 

Thanks in advance. 

In the case of SARFAESI proceedings, if any of the prescribed measures was done wrongly, then the aggrieved person can agitate before DRT and the Tribunal can quash the proceedings.  As per Sec.19, DRT can pass Orders for compensation to the Appellant.

Whereas, in the Original Application filed by bank against the borrowers, under DRT Act, the Defendants can claim 'Counter claim' so as to set off from the dues of the bank.

As opined by Mr. Raju, there are two kinds of remedies available to borrower. One is by way of compensation under Sec.19 of SARFAESI Act 2002 and another by way of counter-claim. But these two are two distinct things and cannot be viewed equally. The imaginary situation (in this  query) may not arise to bring the debt due to zero liability on account of compensation that may be determined by DRT in my opinion.

Dear Mr. Raju & Ramachary, 

Thanks for your inputs. Appreciate the same.