Srinagar, July 17 (KNS): The High Court of Jammu & Kashmir and Ladakh has dismissed a review petition filed by M/s Ghulam Hassan Shah, who had challenged the court's earlier judgment upholding loan recovery proceedings by J&K Bank under the SARFAESI Act.

The petitioner had argued that the land mortgaged for the loan was agricultural and, therefore, protected from action under the SARFAESI Act, 2002. However, the Division Bench, comprising Justice Sanjeev Kumar and Justice Sanjay Parihar, rejected the argument.

The court noted that since the petitioner had taken a loan by offering the land as mortgage, he could not later deny the bank's right to recover dues through legal means. It further stated that such attempts could be seen as an effort to mislead the lender and warned of possible legal consequences.Click Here To Follow Our WhatsApp Channel

Calling the review petition “grossly misconceived,” the court dismissed it and imposed a cost of ?50,000 on the petitioner, to be paid within two weeks.

Legal experts believe the judgment sends a clear message to borrowers that litigation based on weak arguments may backfire. "It highlights the importance of honest dealings with lenders and discourages misuse of legal processes," said a financial and legal affairs observer.

The SARFAESI Act allows banks to recover dues by enforcing secured assets without court intervention, and this ruling strengthens its implementation. (KNS)