Madras High Court
P.R.Jaghadeesh Chandar vs The Authorized Officer on 6 June, 2025
Author: S.M.Subramaniam
Bench: S.M.Subramaniam
W.P(MD)No.8864 of 2025
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 06.06.2025
CORAM:
THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
AND
THE HONOURABLE DR.JUSTICE A.D.MARIA CLETE
W.P(MD)No.8864 of 2025
and
W.M.P.(MD) No.6640 of 2025
P.R.Jaghadeesh Chandar ... Petitioner
Vs.
1.The Authorized Officer,
Reserve Bank of India,
No.16, Rajaji Salai,
Fort Glacis, Chennai-01.
2.The Authorized Officer/Chief Manager,
Karur Vysya Branch,
Asset Recovery Branch,
R.S.No.17/9, Uthankudi Village,
Near Mattuthavani Bus Stand,
Madurai-07. ... Respondents
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, praying this Court to issue a Writ of Certiorarified Mandamus to
call for the records on the file of the 2nd respondent in connection with
the impugned reply dated 30.03.2024 and quash the same as illegal,
1/9
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W.P(MD)No.8864 of 2025
arbitrary and consequently direct him to pay interest for the petitioner's
deposited amount of Rs.70,50,000/- from 04.05.2024 and thereby direct
him to handover the physical possession of the property of his sale
certificate dated 04.11.2023 within the time limit that may be stipulated
by this Court.
For Petitioner : Mr.M.Mohanasundaram
For Respondent : Mr.K.R.Laxman – for R1
: No appearance – for R2
ORDER
[Order of the Court was made by S.M.SUBRAMANIAM, J.]
This writ petition has been instituted challenging the reply letter
given by the second respondent vide letter dated 30th March, 2024.
2. It is not in dispute between the parties that proceedings have
been initiated under the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002. The petitioner
claims to be the successful bidder and deposited the entire sale price.
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However, the Bank has not handed over possession of the property to the
petitioner. If such grievance exists to the petitioner, he is at liberty to
approach the Debts Recovery Tribunal under the Act and Rules.
3. Writ Petition under Article 226 of the Constitution of India is
not maintainable, in view of the judgment of the Hon'ble Supreme Court
in Celir LLP Vs. Bafna Motors (Mumbai) Private Limited and others
reported in (2024) 2 SCC 1. Paragraph Nos.97, 98, 110 and 110.1, which
are relevant in this context, stand extracted hereunder:
“97.This Court has time and again, reminded the
High Courts that they should not entertain petition under
Article 226 of the Constitution if an effective remedy is
available to the aggrieved person under the provisions of
the SARFAESI Act. This Court in Satyawati Tondon [United
Bank of India v. Satyawati Tondon, (2010) 8 SCC 110 :
(2010) 3 SCC (Civ) 260] made the following observations :
(SCC pp. 123 & 128, paras 43-45 & 55)
“43. Unfortunately, the High Court
[Satyawati Tondon v. State of U.P., 2009 SCC
OnLine All 2608] overlooked the settled law
that the High Court will ordinarily not entertain
a petition under Article 226 of the Constitution
if an effective remedy is available to the
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aggrieved person and that this rule applies with
greater rigour in matters involving recovery of
taxes, cess, fees, other types of public money
and the dues of banks and other financial
institutions. In our view, while dealing with the
petitions involving challenge to the action taken
for recovery of the public dues, etc. the High
Court must keep in mind that the legislations
enacted by Parliament and State Legislatures
for recovery of such dues are a code unto
themselves inasmuch as they not only contain
comprehensive procedure for recovery of the
dues but also envisage constitution of quasi-
judicial bodies for redressal of the grievance of
any aggrieved person. Therefore, in all such
cases, the High Court must insist that before
availing remedy under Article 226 of the
Constitution, a person must exhaust the
remedies available under the relevant statute.
44. While expressing the aforesaid
view, we are conscious that the powers
conferred upon the High Court under Article
226 of the Constitution to issue to any person or
authority, including in appropriate cases, any
Government, directions, orders or writs
including the five prerogative writs for the
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enforcement of any of the rights conferred by
Part III or for any other purpose are very wide
and there is no express limitation on exercise of
that power but, at the same time, we cannot be
oblivious of the rules of self-imposed restraint
evolved by this Court, which every High Court
is bound to keep in view while exercising power
under Article 226 of the Constitution.
45. It is true that the rule of
exhaustion of alternative remedy is a rule of
discretion and not one of compulsion, but it is
difficult to fathom any reason why the High
Court should entertain a petition filed under
Article 226 of the Constitution and pass interim
order ignoring the fact that the petitioner can
avail effective alternative remedy by filing
application, appeal, revision, etc. and the
particular legislation contains a detailed
mechanism for redressal of his grievance.
***
55. It is a matter of serious concern
that despite repeated pronouncement of this
Court, the High Courts continue to ignore the
availability of statutory remedies under the DRT
Act and the Sarfaesi Act and exercise
jurisdiction under Article 226 for passing orders
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which have serious adverse impact on the right
of banks and other financial institutions to
recover their dues. We hope and trust that in
future the High Courts will exercise their
discretion in such matters with greater caution,
care and circumspection.”
98.In CIT v. Chhabil Dass Agarwal [CIT v.
Chhabil Dass Agarwal, (2014) 1 SCC 603] , this Court in
para 15 made the following observations : (SCC p. 611,
para 15)
“15. Thus, while it can be said that this
Court has recognised some exceptions to the rule
of alternative remedy i.e. where the statutory
authority has not acted in accordance with the
provisions of the enactment in question, or in
defiance of the fundamental principles of judicial
procedure, or has resorted to invoke the
provisions which are repealed, or when an order
has been passed in total violation of the
principles of natural justice, the proposition laid
down in Thansingh Nathmal case [Thansingh
Nathmal v. Supdt. of Taxes, 1964 SCC OnLine SC
13] , Titaghur Paper Mills case [Titaghur Paper
Mills Co. Ltd. v. State of Orissa, (1983) 2 SCC
433 : 1983 SCC (Tax) 131] and other similar
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judgments that the High Court will not entertain a
petition under Article 226 of the Constitution if an
effective alternative remedy is available to the
aggrieved person or the statute under which the
action complained of has been taken itself
contains a mechanism for redressal of grievance
still holds the field. Therefore, when a statutory
forum is created by law for redressal of
grievances, a writ petition should not be
entertained ignoring the statutory dispensation.”
......
......
......
110.We summarise our final conclusion as
under:
110.1. The High Court was not justified in
exercising its writ jurisdiction under Article 226 of the
Constitution more particularly when the borrowers had
already availed the alternative remedy available to them
under Section 17 of the SARFAESI Act.”
3. In view of the above legal position, granting liberty to the
petitioner, this Writ Petition is dismissed. It is needless to state that the
period during which this writ petition is pending shall be considered for
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condoning the delay. However, there shall be no order as to costs.
Consequently, connected miscellaneous petition is closed.
[S.M.S., J.] [A.D.M.C., J.]
06.06.2025
Index:Yes/No
Internet:Yes/No
NCC:Yes/No
abr
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S.M.SUBRAMANIAM, J.
and
DR.A.D.MARIA CLETE, J.
abr
06.06.2025
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