Madras High Court
M/S.Papathiyammal Pitchai ... vs The Authorised Officer on 4 March, 2021
W.P.(MD) No.2941 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 04.03.2021
CORAM:
THE HON'BLE MR.SANJIB BANERJEE, THE CHIEF JUSTICE
and
THE HON'BLE MRS.JUSTICE R.HEMALATHA
W.P.(MD) No.2941 of 2021
and
W.M.P(MD)No.2372 of 2021
M/s.Papathiyammal Pitchai Educational Trust,
represented by its
Chairman & Managing Trustee,
R.Chandramohan ... Petitioner
-vs-
The Authorised Officer,
City Union Bank Limited,
(Credit Recovery and Management Department),
Administrative Office,
No.24-B, Gandhi Nagar,
Kumbakonam - 612 001.
Thanjavur District. ... Respondent
PRAYER: Petition filed under Article 226 of the Constitution of India, to
issue a writ of Certiorarified Mandamus, to call for the records relating to
the notices issued by the respondent under Section 13(2) and in
A.O./REC/ /2020-21, dated 08.10.2020 and possession notice under
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W.P.(MD) No.2941 of 2021
Section 13(4) of the SARFAESI Act, dated 03.02.2021 by relying upon
by the alleged reclassification of the petitioner's accounts as NPA on
31.01.2020 and quash the same and direct the respondent to follow the
schemes and guidelines issued by the Government of India and Reserve
Bank of India regarding COVID-19 relief and as directed by the
Honourable Supreme Court in W.P(Civil)No.825 of 2020, dated
27.11.2020.
For Petitioner : Mr.S.Natarajan
For Respondent : Mr.Pala.Ramasamy
ORDER
[Order of the Court was made by The Hon'ble CHIEF JUSTICE]
This is another matter where a defaulter having admittedly failed to
repay the dues of the bank seeks to stall the measures taken by the bank
to proceed against the securities by filing this ill-advised petition in this
extraordinary jurisdiction.
2. Whether may be the status of a defaulter, it is of hardly any
consequence. If a debtor as defined in the Securitisation and
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W.P.(MD) No.2941 of 2021
Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 fails to repay the secured creditor and the account is classified
as a non-performing asset, the secured creditor has special powers
conferred by the statute to proceed against the securities without any
recourse to adjudication at that stage. The said Act of 2002 is a departure
from the usual practice in Indian jurisprudence of execution following
adjudication.
3. The vires of the Act has been upheld and the only relief, which
has been afforded, is for a debtor to have a right to protest a notice issued
under Section 13(2) of the Act by the secured creditor. Even the
treatment of such notice by the secured creditor is not justiciable at such
stage as a debtor, or any person aggrieved for that matter, may approach
the Debts Recovery Tribunal only upon measures being taken by a
secured creditor under Section 13(4) of the Act.
4. In the present case, a possession notice has been issued on
February 3, 2021 which implies that measures have been resorted to by
the respondent secured creditor under Section 13(4) of the Act.
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W.P.(MD) No.2941 of 2021
5. Ordinarily, Debts Recovery Tribunals entertain petitions upon
requiring a substantial deposit to be made. There is no doubt that this
petitioner seeks to dodge the deposit, which should neither be encouraged
nor permitted.
6. Since there is an efficacious alternative remedy available to the
petitioner as statutorily ordained, the present writ petition is not
entertained and the writ petitioner is left free to pursue such remedy in
accordance with law.
7. The petitioner claims that judgments of the Supreme Court
instruct that the Government guidelines must be followed by banks and
financial institutions pertaining to classification of accounts as NPAs. If
it is the petitioner's grievance that the petitioner's account has been
wrongly classified as NPA, that is also a grievance capable of being
carried to the appropriate Debts Recovery Tribunal under Section 17 of
the Act and the writ Court should not be disturbed over it.
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W.P.(MD) No.2941 of 2021
8. W.P.(MD) No.2941 of 2021 is disposed of without any order as
to costs. Consequently, W.M.P.(MD) No.2372 of 2021 is closed.
[S.B., C.J.] [R.H.,J.]
04.03.2021
Index : Yes / No
Internet : Yes
RR/OGY
Note :
In view of the present lock
down owing to COVID-19
pandemic, a web copy of the
order may be utilized for
official purposes, but,
ensuring that the copy of the
order that is presented is the
correct copy, shall be the
responsibility of the
advocate / litigant
concerned.
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W.P.(MD) No.2941 of 2021
THE HON'BLE THE CHIEF JUSTICE
and
R.HEMALATHA, J.
RR/OGY
W.P.(MD) No.2941 of 2021
and
W.M.P(MD)No.2372 of 2021
04.03.2021
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