Karnataka High Court
M/S Gm Infinite Dwelling (India) ... vs The State Bank Of India on 23 November, 2023
Bench: Chief Justice, Krishna S Dixit
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NC: 2023:KHC:42148-DB
WA No. 1214 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 23RD DAY OF NOVEMBER, 2023
PRESENT
THE HON'BLE MR PRASANNA B. VARALE, CHIEF JUSTICE
AND
THE HON'BLE MR JUSTICE KRISHNA S DIXIT
WRIT APPEAL NO. 1214 OF 2023 (GM-RES)
BETWEEN:
M/S GM INFINITE DWELLING (INDIA)
PRIVATE LIMITED,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT
HAVING ITS REGISTERED OFFICE AT No. 6
G M PEARL
1ST STAGE, 1ST PHASE,
BTM LAYOUT BANGALORE - 560068
Digitally
signed by
SHARADA
VANI B REPRESENTED BY ITS DIRECTOR /AUTHORIZED
Location:
HIGH COURT SIGNATORY,
OF
KARNATAKA
SRI. JAWID HUSSAIN,
S/O. LATE. GULAM RASOOL,
AGED ABOUT 42 YEARS,
DOING BUSINESS AT No. 6, GM PEARL,
1ST STAGE, 1ST PHASE,
BTM LAYOUT
BANGALORE - 560068
...APPELLANT
(BY SRI. V. LAKSHMINARAYANA, SR. ADVOCATE A/W
SRI. CHANDRA L, ADVOCATE)
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NC: 2023:KHC:42148-DB
WA No. 1214 of 2023
AND:
THE STATE BANK OF INDIA
MYSORE BANK CIRCLE BRANCH,
NO 644/645, AVENUE ROAD,
BANGALORE - 560049.
REPRESENTED BY ITS AUTHORIZED OFFICER
...RESPONDENT
(BY SRI. VIKRAM HUILGOL SR. ADVOCATE FOR
SRI. M. ASHOK KUMAR, ADVOCATE)
THIS WRIT APPEAL FILED U/S 4 OF THE KARNATAKA
HIGH COURT ACT READ WITH RULE 27 OF THE WRIT
PROCEEDINGS RULES PRAYING TO SET ASIDE THE ORDER
DATED 01.09.2023 PASSED BY THE SINGLE JUDGE IN WP.
No.5/2023 (GM-RES) ON THE FILE OF HON'BLE HIGH COURT
OF KARNATAKA AT BANGALORE AND CONSEQUENTLY ALLOW
THE SAID WRIT PETITION AS PRAYED FOR, IN THE INTEREST
OF JUSTICE AND EQUITY.
THIS APPEAL, COMING ON FOR ORDERS, THIS DAY,
CHIEF JUSTICE DELIVERED THE FOLLOWING:
JUDGMENT
This intra-Court appeal seeks to lay a challenge to the
learned Single Judge's order dated 01.09.2023 whereby, the
appellant has been denied the substantive relief against the
Demand Notice for the recovery of loan issued under Section
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13(2) of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002, his
bank account having been declared NPA.
2. Learned Sr. counsel appearing for the appellant submits
that pursuant to interim order of this court dated 15.11.2023,
the appellant has deposited an amount of Rs.5 Crore (Rupees
five crore) only in the bank and therefore, prays for the
substantive relief namely, the invalidation of the subject
Demand Notice, on certain grounds. Learned Sr. Advocate
appearing for the respondent-bank admits that the appellant
has deposited the said sum, albeit with delay and that the said
deposit is a frugal sum since what is due is about Rs.67 Crore.
He also adds that the appellant has an alternate and equally
efficacious remedy as provided under Section 17 of the 2002
Act and therefore, this Court need not undertake a deeper
examination of the merits of the matter, there being no
extraordinary circumstance. There is force in this submission.
3. Considering these aspects of the matter, we deem it
appropriate to dispose off the appeal itself by permitting the
appellant to approach the Debt Recovery Tribunal by filing
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appropriate proceedings under the provisions of SARFAESI Act
2002 along with necessary application, if so advised, as early
as possible and not later than four weeks from today. The
respondent-bank shall not initiate any coercive action against
the appellant for a period of four weeks.
It is needless to state that in case the appellant fails to
take appropriate steps within the stipulated time period of four
weeks, the respondent-bank is at liberty to initiate action
against the appellant-borrower. Further, we make it clear that
all contentions are kept open for consideration by the Debt
Recovery Tribunal.
With these observations, the appeal is disposed off.
Sd/-
CHIEF JUSTICE
Sd/-
JUDGE
SNB
