If the Debts Recovery Tribunal or the Court of District Judge on an application made under section 17 or section 17A or the Appellate Tribunal or the High Court on an appeal preferred under section 18 or section 18A, holds that the possession of secured assets by the secured creditor is not in accordance with the provisions of this Act and rules made thereunder and directs the secured creditors to return such secured assets to the concerned borrowers or any other aggrieved person, who has suffered injury by reason of such possession by the secured creditor, it may also direct the secured creditor to pay such person such compensation and costs as may be determined by such Tribunal or Court.
Legal Commentary & Landmark Judgments: Section 19
Section 19 of the SARFAESI Act, 2002 establishes the statutory right of the borrower to claim compensation, restitution, and costs from the secured creditor where the Debts Recovery Tribunal or Appellate Tribunal determines that recovery measures were initiated unlawfully.
Always incorporate an explicit prayer under Section 19 in every Section 17 Securitisation Application. Quantify damages for illegal lock-out, plant closure, inventory deterioration, and business disruption supported by certified chartered accountant and valuer reports.