Orissa High Court
The Urban Co-Operative Bank Ltd vs Registrar on 22 February, 2023
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) Nos.23694, 25055 of 2014 & 477 of 2015
The Urban Co-operative Bank Ltd., .... Petitioners
Cuttack Nuapatna Branch & Another
(In W.P.(C) No.23694 of 2014)
Mr. Sudarshan Nanda, Advocate
-versus-
Registrar, Debt Recovery Tribunal, .... Opposite Parties
Cuttack Bench & Others
.... Petitioners
The Urban Co-operative Bank Ltd.,
Cuttack Nuapatna Branch & Another
(In W.P.(C) No.25055 of 2014)
Mr. Sudarshan Nanda, Advocate
-versus-
Registrar, Debt Recovery Tribunal, .... Opposite Parties
Cuttack Bench & Others
.... Petitioner
The Urban Co-operative Bank Ltd.,
Cuttack Nuapatna Branch
(In W.P.(C) No.477 of 2015)
Mr. Sudarshan Nanda, Advocate
-versus-
Registrar, Debt Recovery Tribunal, .... Opposite Parties
Cuttack Bench & Others
CORAM:
THE CHIEF JUSTICE
JUSTICE M. S. RAMAN
ORDER
22.02.2023
Order No.
04. 1. In all these petitions by the Urban Co-operative Bank Ltd.,
Cuttack, the challenge is to orders dated 21st August and 29th
September, 2014 passed by the Debt Recovery Tribunal (DRT) in
S.A. Nos. 17, 19 and 43 of 2014. The said applications had been
filed by the Opposite Parties under Section 17(1) of the SARFAESI
Act, 2002 questioning the notices under Section 13(2) and 13(4) of
the SARFAESI Act issued by the present Petitioner-Bank. The DRT
has by the impugned orders quashed the said notices holding that the
provisions of the SARFAESI Act do not apply to Co-operative
Banks. In doing so, the DRT has followed the judgment dated 22nd
April, 2013 of the Gujarat High Court in Special Civil Application
Nos.930 of 2011 etc.etc. (Shri Dhakdi Group Co-operative Cotton-
Seed and others vs. Union of India). In that judgment, the Gujarat
High Court had declared a Notification dated 28th January, 2923
issued by the Govt. of India notifying a 'cooperative bank' as a
'bank' in terms of List-I, Entry-45 of the Seventh Schedule as ultra
vires and held that Co-operative Banks cannot invoke the provisions
of the SARFAESI Act.
2. The above judgment of the Gujarat High Court has since been
reversed by the Constitution of the Supreme Court of India in
Pandurang Ganpati Chaugule v. Vishwasrao Patil Murgud
Sahakari Bank Limited (2019) 9 SCC 215. The Supreme Court of
India has held that the Co-operative Banks can invoke the provisions
of the SARFAESI Act.
3. In that view of the matter, the impugned orders of the DRT are
hereby set aside the aforementioned three S.A. Nos. 17, 19 and 43 of
2014 are restored to file of the DRT where it will be listed for
hearing on 3rd April, 2023. A copy of this order be sent to the
Presiding Officer of the DRT, Cuttack forthwith.
4. The writ petitions are disposed of in the above terms.
(Dr. S. Muralidhar)
Chief Justice
(M. S. Raman)
Judge
Aks
