Orugonda Venugopal Chetty vs Union Of India
2022 Latest Caselaw 5192 AP

               HON'BLE SRI JUSTICE R. RAGHUNANDAN RAO

                            W.P.No.22944 of 2022

ORDER:

The petitioner had obtained a loan from the 2nd respondent-Bank

and had created equitable mortgage of the property over the house of the

petitioner. While the debt remained due, the 2nd respondent is said to

have transferred the loan account of the petitioner to the 5 th respondent

and had intimated the same to the petitioner by letter dated 22.04.2021.

Aggrieved by the said transfer of debt, the petitioner has approached this

Court by way of the present writ petition.

This Court had called upon the learned counsel for the petitioner to

show how the writ petition would be maintainable as the writ petition has

been filed against the private persons.

The learned counsel for the petitioner relied upon the judgment of

the Hon'ble Supreme Court of India in Phoenix ARC Private Limited

vs. Vishwa Bharati Vidya Mandir & Ors., dated 12.01.2022 in Civil

Appeal Nos.257-259 of 2022. The Hon'ble Supreme Court at paragraph 12

of the said judgment had held that the writ petitions against private

parties would not be maintainable. However, if proceedings are initiated

under SARFAESI Act, 2002 and/or proposed action is to be taken and the

borrower is aggrieved by any of the actions of the private bank/ARC, the

borrower has to avail the remedy under the SARFAESI Act, 2002 and no

writ petition would lie.

The learned counsel for the petitioner would submit that in such

circumstances, the right of the petitioner to approach the Debt Recovery

Tribunal would remain.

                                            2                            RRR,J
                                                         W.P.No.22944 of 2022

Accordingly, this writ petition is dismissed, leaving it open to the

petitioner to approach the appropriate authority including the Debt

Recovery Tribunal, for appropriate relief. There shall be no order as to

costs.

As a sequel, pending miscellaneous petitions, if any, shall stand

closed.

_________________________ R. RAGHUNANDAN RAO, J.

16th August, 2022 Js.

                            3                         RRR,J
                                      W.P.No.22944 of 2022

HON'BLE SRI JUSTICE R. RAGHUNANDAN RAO

W.P.No.22944 of 2022

16th August, 2022

Js.