[Cites 5, Cited by 0]
Gujarat High Court
M/S Kalpesh Cotton Industries Pvt. Ltd vs State Bank Of India on 4 December, 2025
NEUTRAL CITATION
C/SCA/16348/2025 ORDER DATED: 04/12/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 16348 of 2025
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M/S KALPESH COTTON INDUSTRIES PVT. LTD.
Versus
STATE BANK OF INDIA & ANR.
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Appearance:
MR HIMANSHU C DESAI(6832) for the Petitioner(s) No. 1
MR RITURAJ M MEENA(3224) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE
Date : 04/12/2025
ORAL ORDER
1. By the present writ petition, the petitioner is praying for quashing
and setting aside the web notice dated 04.02.2025 and paper notice dated
05.02.2025 has been contrary to the provisions of Section 5 of the
Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (for short "the SARFAESI, Act").
2. Learned counsel for the petitioner submits that the deed of
assignment executed by the respondent no.1 in favour of respondent no.2
is illegal, void and being contrary to Section 5 of the SARFAESI Act,
which permits assignment of debt only to an Asset Reconstruction
Company (ARC). He further submits that respondent no.2-Company is
not an ARC and therefore, the said transaction is in contravention of
Section 5 of the SARFAESI Act. He, therefore, prayed that the auction
dated 04.03.2025 as well as the sale notice dated 17.12.2025 be quashed
and set aside.
3. Considered the submissions and perused the documents on record.
4. The petitioner is a defaulter having an outstanding debt of Rs.22.59
Crores as per the sale notice. The petitioner's account has been declared
NPA and notice under Section 13(2) of the SARFAESI Act came to be
NEUTRAL CITATION
C/SCA/16348/2025 ORDER DATED: 04/12/2025
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issued on 01.07.2015. Thereafter, respondent-Bank has also filed OA
No.461 of 2015 in the Debt Recovery Tribunal (DRT), Ahmedabad.
Since the petitioner did not appear, the learned DRT has passed the final
order ex parte on 04.10.2016. Thereafter, the petitioner has filed an
application for recall/restoration of the said order. The petitioner has also
preferred Securitization Application No.35 of 2016 challenging the notice
under Sections 13(2) and 13(4) of the SARFAESI Act and the same is
pending.
5. By the present writ petition, it is an attempt of the the petitioner to
stall the recovery of the debt. Prima facie, the petitioner has no locus to
challenge the deed of assignment executed between the respondent nos.1
and 2. The petitioner has alternative efficacious remedy in law. No any
infringement of right of the petitioner-company is made out in the present
writ petition.
6. In view of the judgment of the Apex Court in the case of PHR
Invent Educational Society v. UCO Bank & Ors. (2024) 6 SCC 579, the
present writ petition is not entertained. The petitioner is at liberty to
initiate appropriate proceedings in law. The questions of law and the
contentions raised in the present writ petition are kept open. The present
petition is dismissed accordingly.
7. Learned counsels Mr.Pranav Desai and Mr.Monaal Davawala are
permitted to file their vakalatnama on behalf of respondent nos.1 and 2.
Sd/-
(ANIRUDDHA P. MAYEE, J.)
ABHISHEK/19
