T.Chelladurai vs The Authorised Officer
2023 Latest Caselaw 1225 Mad

                                                                                          W.P.No.2380 of 2023

                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                                     DATED : 31.01.2023
                                                           CORAM
                                  THE HONOURABLE MR.T.RAJA, ACTING CHIEF JUSTICE
                                                             AND
                        THE HONOURABLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY
                                                     W.P.No.2380 of 2023
            T.Chelladurai                                                                  .. Petitioner
                                                              Versus


            1.The Authorised Officer,
              Karur Vysya Bank,
              Tiruppur Main Branch,
              Tiruppur.

            2.S.Subramaniam

            3.M.Sheik                                                                .. Respondents

            Prayer: Writ Petition has been filed under Article 226 of the Constitution of India seeking for
            issuance of a writ of mandamus directing the first respondent to conduct re-auction in respect
            of the property situated in Survey No.442/9A & 9B (earlier Survey No.442/1A2 & 1D),
            Ilanji Special Grade Panchyat and Ilanji Village, Tenkasi District, to an extent of 15 cents
            and the building of 3297.9 sq.ft. and pass such further orders.
                                   For Petitioner            : Mr.D.Srinivasaragavan


                                                           ORDER

(Delivered by The Hon'ble Acting Chief Justice)

The petitioner, claiming to be the lender of the second respondent, has filed this writ

petition seeking for issuance of a writ of mandamus directing the Authorised Officer, Karur

Vysya Bank, Tiruppur Main Branch, Triuppur/first respondent to conduct re-auction in

respect of the property situated in Survey No.442/9A & 9B (earlier Survey No.442/1A2 & https://www.mhc.tn.gov.in/judis

W.P.No.2380 of 2023

1D), Ilanji Special Grade Panchyat and Ilanji Village, Tenkasi District, having an extent of

15 cents and the building of 3297.9 sq.ft.

2. Learned counsel for the petitioner would submit that the second respondent

borrowed a loan to the tune of Rs.9,00,000/- from the petitioner. But, since he did not repay

the said sum, he filed a suit in O.S.No.350 of 2020, whereby learned Principal Sub Judge,

Tenkasi, granted an order of Attachment Before Judgment. Now, in an effort to make the

order of Attachment Before Judgment infructuous, the first respondent bank, in collusion

with the borrower, has brought the property in question for public auction. Such an action of

the first respondent bank is running contrary to the order of Attachment Before Judgment

granted by the Principal Sub-Court, Tenkasi. Therefore, a direction may be given to the first

respondent bank to re-auction the property in question.

3. We are unable to agree with the above said submissions. The petitioner claims to

be one of the lenders of the second respondent/borrower. It is seen from the E-auction sale

notice dated 30.07.2022 that the second respondent borrowed a loan from the first

respondent bank and as on 30.06.2022, the second respondent is liable to pay a sum of

Rs.34,21,102.76/-. Since the second respondent failed to make the payment, the first

respondent bank initiated SARFAESI proceedings by bringing the property of the

borrower/second respondent in public auction. The Bank being the secured creditor, has

precedence over the petitioner. The further contention that the property was sold for lesser

value and that he is ready to purchase the property is also without any substance, as he could https://www.mhc.tn.gov.in/judis

W.P.No.2380 of 2023

have taken part in the public auction, but, without doing so, in our considered view, he

cannot maintain the present writ petition. On this count, the writ petition is liable to be

dismissed and accordingly, it is dismissed. No Costs. Consequently, connected

miscellaneous petitions are closed.

(T.R., ACJ.) (D.B.C., J.) 31.01.2023 rkm Index: yes/no Neutral citation: yes/no

To

The Authorised Officer, Karur Vysya Bank, Tiruppur Main Branch, Tiruppur.

https://www.mhc.tn.gov.in/judis

W.P.No.2380 of 2023

THE HON'BLE ACTING CHIEF JUSTICE and D.BHARATHA CHAKRAVARTHY, J.

rkm

W.P.No.2380 of 2023

31.01.2023

https://www.mhc.tn.gov.in/judis