Madras High Court
P.Madasamy vs The Tamilnadu Industrial ... on 25 July, 2023
W.P.No.21979 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 25.07.2023
CORAM :
THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE P.D.AUDIKESAVALU
W.P.No.21979 of 2023
P.MADASAMY
PROPRIETOR
DEEPAM ENGINEERING COMPANY
OLD NO.560, NEW NO. 268
M.T.H. ROAD, AMBATTUR INDUSTRIAL ESTATE
NEAR TELEPHONE EXCHANGE
CHENNAI – 600 009. .. Petitioner
Vs
THE TAMILNADU INDUSTRIAL INVESTMENT
CORPORATION LTD.
(A GOVT. OF TAMIL NADU UNDERTAKING)
CHENNAI BRANCH (GROUND FLOOR)
NO.692, ANNA SALAI, NANDANAM
CHENNAI – 600 035
REP. BY ITS ADMINISTRATIVE OFFICER. .. Respondent
Prayer: Petition filed under Article 226 of the Constitution of India
seeking issuance of a writ of declaration declaring that the
respondent is not a secured creditor within the meaning of the
SARFAESI Act 2002 and the Rules thereunder as the respondent
has not registered the secured debt pertaining to the petitioner's
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W.P.No.21979 of 2023
property situate at Plot No.28C, Sri Iyyappa Nagar Main Road,
comprised in Survey Nos.1239/1, 1239/2, 1239/3 and 1374/3,
Ponniammanmedu, Chennai – 600 110, Madhavaram Village,
Ambattur Taluk, Tiruvallur District admeasuring 600 Sq.ft without
following the due procedure as required under Section 26-D of
Chapter IV -A of the Amending Act of 2016 of SARFAESI Act, 2002
with the Central Registry of Securitization Asset Reconstruction and
Security Interest of India (CERSAI).
For the Petitioner : Mr.R.Abdul Mubeen
For the Respondent : Mr.P.T.Rakesh
ORDER
(Order of the court was made by the Hon'ble Chief Justice)
We have heard Mr.R.Abdul Mubeen, learned counsel for the
petitioner, and Mr.P.T.Rakesh, learned counsel for the respondent.
2. Learned counsel for the petitioner submits that the
respondent has not registered the security as is contemplated and
mandated under Section 26-D of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002. In the absence of the registration of the said
security as contemplated under Section 26-D of the SARFAESI Act,
the respondent does not have any right or authority to enforce the
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W.P.No.21979 of 2023
security under the provisions of the SARFAESI Act.
3. As the respondent has no authority to invoke the provisions
of the SARFAESI Act in the absence of registration of the security as
is mandated under Section 26-D of the SARFAESI Act, the petitioner
has filed the present writ petition. Reliance is placed by learned
counsel for the petitioner on the judgment of the Full Bench of the
Bombay High Court in the case of Jalgaon Janta Sahakari Bank Ltd
and another v. Joint Commissioner of Sales Tax, 2022 (5) Mh.L.J.
691, and also on the judgment of a learned Single Judge of the
Gauhati High Court in the case of Goverdhan Prasad Atal v. Assam
Gramin Vikash Bank and others, AIR 2021 Gau 47.
4. The petitioner has already challenged the action under
Section 13(4) of the SARFAESI Act by filing a securitisation
application. The same was rejected. Aggrieved thereby, the
petitioner has filed an appeal before the Debt Recovery Appellate
Tribunal and the same is pending. The petitioner can raise all the
defences before the Debt Recovery Appellate Tribunal.
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W.P.No.21979 of 2023
5. It is trite that the petitioner cannot adopt two remedies for
the same purpose. As the appeal filed by the petitioner is already
pending with the Debt Recovery Appellate Tribunal, it would be
inappropriate to entertain a parallel proceeding before this court.
6. With the observation that the petitioner can raise all the
possible defences in the pending appeal before the Debt Recovery
Appellate Tribunal, the writ petition is disposed of. The Debt
Recovery Appellate Tribunal may consider to dispose of the appeal
expeditiously. There will be no order as to costs. Consequently,
W.M.P.No.21352 of 2023 is closed.
(S.V.G., CJ.) (P.D.A., J.)
25.07.2023
Index : Yes/No
Neutral Citation : Yes/No
sasi
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W.P.No.21979 of 2023
To:
THE ADMINISTRATIVE OFFICER
THE TAMILNADU INDUSTRIAL INVESTMENT
CORPORATION LTD.
CHENNAI BRANCH (GROUND FLOOR)
NO.692, ANNA SALAI, NANDANAM
CHENNAI – 600 035
REP. BY ITS
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W.P.No.21979 of 2023
THE HON'BLE CHIEF JUSTICE
AND
P.D.AUDIKESAVALU,J.
(sasi)
W.P.No.21979 of 2023
25.07.2023
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