Karnataka High Court
Smt Khatun Jailani Shaikh vs The Idfc First Bank Ltd on 24 July, 2024
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NC: 2024:KHC-D:10461
WP No. 107842 of 2023
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 24TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO.107842 OF 2023 (GM-RES)
BETWEEN:
1. SMT KHATUN JAILANI SHAIKH
AGE. 40 YEARS, OCC. HOUSEHOLD WORK,
R/O. PPC NO.118/A, ALNAVAR VILLAGE,
TALUK AND DISTRICT DHARWAD-581103.
2. SRI. JAILANI JANGLI SHAIKH,
AGE. 50 YEARS, OCC. PETTY BUSINESS,
R/O. PPC NO.118/A, ALNAVAR VILLAGE,
TALUK AND DISTRICT, DHARWAD-581103.
...PETITIONERS
(BY SRI. H. M. DHARIGOND., ADVOCATE)
AND:
YASHAVANT
NARAYANKAR
Digitally signed by
THE IDFC FIRST BANK LTD
YASHAVANT
NARAYANKAR
Location: HIGH COURT
REGISTERED OFFICE AT KRM TOWERS,
7TH FLOOR NO.1, HARRINGTON ROAD,
OF KARNATAKA,
DHARWAD BENCH
Date: 2024.07.27 12:04:49
+0530
CHETPET, CHANNAI-600031,
R/BY AUTHORIZED OFFICER,
MR. NISARAHMED NADAF
AGE. 36 YEARS, BRANCH OFFICE
AT GROUND FLOOR, SURAJ ARCADE
JAYANAGAR 1ST CROSS,
SAPTHAPUR, DHARWAD-580001.
...RESPONDENT
(BY SRI. H.M.DHARIGOND., ADVOCATE)
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NC: 2024:KHC-D:10461
WP No. 107842 of 2023
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227
OF CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED
ORDER DATED. 02-11-2023 PASSED BY THE 1ST ADDL SENIOR CIVIL
JUDGE CHIEF JUDICIAL MAGISTRATE COURT AT DHARWAD ON
APPLICATION UNDER SECTION 14 OF THE SARFAESI ACT, 2002 IN
CRL.MISC. NO. 354/2023 FILED BY THE RESPONDENT BANK
PRODUCED AT VIDE ANNEXURE-F, IN THE INTEREST OF JUSTICE
AND EQUITY.
THIS PETITION IS COMING ON FOR ORDERS THIS DAY, THE
COURT MADE THE FOLLOWING:
ORDER
The captioned writ petition is filed by the petitioners
assailing the order dated 02.11.2023 passed by learned
1st Additional Senior Civil Judge and CJM, Dharwad, (vide
Annexure-F) under Section 14 of the Securitization &
Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (for short 'SARFAESI Act').
2. 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
SARFAESI Act.
3. 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 the
case of K. Virupaksha and another vs. State of
NC: 2024:KHC-D:10461
Karnataka1. The Division Bench held that the SARFAESI Act is
a complete 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.
4. 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
(2020) 4 SCC 440
NC: 2024:KHC-D:10461
have approached the writ Courts to challenge the impugned
orders. Accordingly, this Court passes the following:
ORDER
i. The writ petition is devoid of any merit 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
AM
