Karnataka High Court
N M Noor Ahmed S/O. N M Nabi vs The Bellary Dist Co-Op. Central Bank Ltd on 23 July, 2024
-1-
NC: 2024:KHC-D:10330
WP No. 103041 of 2023
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 23RD DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO. 103041 OF 2023 (GM-RES)
BETWEEN:
N.M.NOOR AHMED S/O. N.M. NABI,
AGE: 39 YEARS,
14TH WARD, RAMANAGAR,
KUDLIGI, VIJAYANAGAR DISTRICT-583135.
...PETITIONER
(BY SRI. HARSH DESAI, ADVOCATE)
AND:
THE BELLARY DIST CO-OP. CENTRAL BANK LTD.,
REPRESENTED BY ITS AUTHORISED MANAGER,
SHANKAR DANDI, OFFICE AT: P.B. NO.17,
OPP. TO TOWN POLICE STATION,
HOSAPETE, VIJAYANAGARA DISTRICT-583201.
...RESPONDENT
(BY SRI. PRAVEEN P.TARIKAR, ADVOCATE)
YASHAVANT
NARAYANKAR
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
Digitally signed by
YASHAVANT
NARAYANKAR
Location: High Court
of Karnataka,
Dharwad Bench
OF THE CONSTITUTION OF INDIA PRAYING TO, ISSUE A WRIT OF
Date: 2024.07.26
15:54:55 +0530
CERTIORARI QUASHING SALE NOTICE DATED 18.04.2023 AS PER
ANNEXURE -A ISSUED BY THE RESPONDENT IN RESPECT OF THE
SCHEDULE PROPERTIES; DIRECT THE RESPONDENT-BANK TO
GRANT FURTHER 6 MONTHS TIME TO PAY THE BALANCE DUE AS PER
ANNEXURE-A OF THE SALE NOTICE DATED 18-04-2023.
THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY,
THE COURT MADE THE FOLLOWING:
-2-
NC: 2024:KHC-D:10330
WP No. 103041 of 2023
ORDER
1. The captioned writ petition is filed by the
petitioner assailing the auction sale notice dated 18.04.2023
issued under Rule 18 of the SARFAESI Act.
2. Learned counsel for the petitioner submits that,
though despite granting interim order by this Court, which
was condition, the petitioner has failed to comply with the
impugned order.
3. Time and again, the Hon'ble Apex Court has held
that this Court should not entertain actions initiated by
secured creditors against defaulters under the provisions of
the Securitization & Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (SARFAESI Act).
4. The Division Bench of this Court, in W.A. No.
1305/2021 disposed of on 23.12.2021, took cognizance of
the judgment rendered by the Hon'ble Apex Court in K.
Virupaksha and another vs. State of Karnataka1. The
Division Bench held that the SARFAESI Act is a complete
(2020) 4 SCC 440
NC: 2024:KHC-D:10330
code in itself, providing the procedure to be followed by the
secured creditor. The Division Bench further held that the
SARFAESI Act also provides remedies for borrowers. The
Hon'ble Apex Court in the case of K. Virupaksha (supra)
noted the authority vested with the Debt Recovery Tribunal
(DRT) under sub-section (3) of Section 17 of the SARFAESI
Act. The Court held that the Legislature, by including sub-
section (3) in Section 17 of the SARFAESI Act, vested the
DRT with the authority to set aside transactions, including
sales, and restore possession to the borrower in appropriate
cases. Therefore, the Apex Court has strongly discouraged
High Courts from entertaining writ petitions challenging
orders passed under the provisions of the SARFAESI Act,
which fall within the jurisdiction of the DRT.
5. The principles laid down by the Apex Court in the
aforementioned judgment, followed by the Division Bench,
bind this Court. The possession notice issued by the
respondent/Bank falls squarely within the domain of Section
17 of the SARFAESI Act. Consequently, the petitioner should
not have approached the writ Court to challenge the
NC: 2024:KHC-D:10330
impugned notice. Accordingly, this Court passes the
following:
ORDER
i. The writ petition is devoid of any merits and
is accordingly dismissed.
ii. However, it is made clear that this order will
not preclude the petitioner from availing
remedies as provided by law.
iii. The Registry is directed to return the
original documents after securing
photocopies.
iv. In view of disposal of the petition, pending
interlocutory applications, if any, do not
survive for consideration and are disposed
of accordingly.
Sd/-
JUDGE
SVH
