M/S. Royal Educational Trust vs The Authorized Officer
2023 Latest Caselaw 6969 Mad

                                                                             W.P. No. 18308 of 2023

                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                     DATED: 23.06.2023

                                                           CORAM

                                     THE HON'BLE MR.JUSTICE S. VAIDYANATHAN

                                                            AND

                                       THE HON'BLE MR. JUSTICE K. RAJASEKAR

                                                    W.P. No. 18308 of 2023

                                                              &

                                                  W.M.P. No. 17512 of 2023

                     1.           M/s. Royal Educational Trust,
                                  Having its Administrative Office,
                                  at No.16/177 A, Palakkad Main Road,
                                  Marappallam, Madukkarai,
                                  Coimbatore 641 105 rep. by its
                                  Managing Trustee, A. Gunasingh

                     2.           A. Gunasingh,
                                  Managing Trustee of
                                  M/s. Royal Educational Trust,
                                  S/o. Late A.Azariah Nadar,
                                  No.16/177A, Palakkad Main Road,
                                  Marappallam, Madukkarai,
                                  Coimbatore 641 105                          ..Petitioners

                                                             Vs.



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                                                                                 W.P. No. 18308 of 2023

                     The Authorized Officer,
                     M/s. Union Bank of India,
                     Erstwhile Corporation Bank,
                     Assets Recovery Branch,
                     Oppanakara Street,
                     Coimbatore 641 001.                                          ..Respondent

                     Prayer:           Petition under Article 226 of the Constitution of India praying

                     for issue of a Writ Cetiorari to call for the records pertaining to the

                     impugned notice in reference AAB/13(2)/21/2022-23 dated 27.01.2023

                     issued by the respondent which notice is the 2nd notice issued under Section

                     13(2) of the SARFAESI Act by the respondent without recalling their

                     earlier notice issued under Section 13(2) of the Act, dated 30.10.2012 and

                     quash the impugned notice dated 27.01.2023 and consequent further

                     proceedings.

                                       For Petitioners   ::    Mr.V. Jayachandran



                                                          ORDER

(By S. Vaidyanathan,J.)

The writ petition has been filed challenging the notice dated

30.10.2012 issued by the respondent under Section 13(2) of Securitisation

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and Reconstruction of Financial Assets and Enforcement of Security

Interest Act, 2002 ('SARFAESI' Act in short).

2. Admittedly, as against the notice issued by the 2nd respondent

under Section 13(2) of Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI' Act in

short), the petitioners have got an effective alternate remedy by way of

statutory appeal under Section 17 of SARFAESI Act before the Debts

Recovery Tribunal. There are a catena of judgments holding that High

Courts cannot be alternative remedial Courts in such matters. Hence, the

relief sought by the petitioners cannot be granted.

3. Though the learned counsel for the petitioners produeced an

undertaking affidavit before this Court stating that the petitioners are

willing to pay a sum of Rs.1.75 crores in five instalments, it is for the

respondent Bank to consider the same.

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S. VAIDYANATHAN,J.

AND

K. RAJASEKAR,J.

nv

4. The writ petition stands dismissed with liberty to the petitioners

to approach the appropriate forum. No costs. Connected W.M.P. is closed.

(S.V.N.J.) (K.R.S.J.) nv 23.06.2023

To The Authorized Officer, M/s. Union Bank of India, Erstwhile Corporation Bank, Assets Recovery Branch, Oppanakara Street, Coimbatore 641 001.

W.P. No. 18308 of 2023

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