M/S Solution And Solution vs Reserve Bank Of India
2022 Latest Caselaw 1720 Raj/2

Citation : 2022 Latest Caselaw 1720 Raj/2
Judgement Date : 23 February, 2022

Rajasthan High Court

M/S Solution And Solution vs Reserve Bank Of India on 23 February, 2022

Bench: Inderjeet Singh

      HIGH COURT OF JUDICATURE FOR RAJASTHAN
                  BENCH AT JAIPUR

              S.B. Civil Writ Petition No. 11505/2021

M/s Solution And Solution, Purani Vidhan Sabha Ke Samne,
1899, Bhatton Ki Gali, Jaipur, Through Its Proprietor Smt. Savita
Sharma W/o Shri Amit Sharma.
                                                                   ----Petitioner
                                   Versus
1.     Reserve Bank Of India, Through Its Chief General
       Manager, Tonk Road, Rambagh, Jaipur.
2.     Aditya Birla Finance Ltd., Having Its Branch Office At 1St
       Floor, Vijaya Building, 17, Barakhambha Road, New Delhi-
       110001 Through Its Authorized Officer.
                                                                ----Respondents

Connected With S.B. Civil Writ Petition No. 9209/2021 M/s Solution And Solution, Purani Vidhan Sabha Ke Samne, 1899, Bhatton Ki Gali, Jaipur, Through Its Proprietor Smt. Savita Sharma W/o Shri Amit Sharma.

----Petitioner Versus

1. Reserve Bank Of India, Through Its Chief General Manager, Tonk Road, Rambagh, Jaipur.

2. Fullerton India Credit Company Limited (Ficcl), Registered Office- Megh Towers, 3Rd Floor, Old No. 307, Poonamallee High Road, Maduravoyal, Chennai (Tn)- 600 095.

----Respondents

For Petitioner(s) : Mr. Sandeep Garssa. For Respondent(s) : Mr. Naman Yadav.

Ms. Anandita Singh.

HON'BLE MR. JUSTICE INDERJEET SINGH

Order

23/02/2022

(2 of 3) [CW-11505/2021]

Admittedly, the petitioner has filed these writ petitions

against the private Banking institution.

The Hon'ble Supreme Court in the matter of Phoenix ARC

Private Limited Vs. Vishwa Bharati Vidya Mandir & Ors.

(Civil Appeal Nos. 257-259 of 2022) in Para-12 has held as

under;-

"12. Even otherwise, it is required to be noted that a writ petition against the private financial institution - ARC - appellant herein under Article 226 of the Constitution of India against the proposed action/actions under Section 13(4) of the SARFAESI Act can be said to be not maintainable. In the present case, the ARC proposed to take action/actions under the SARFAESI Act to recover the borrowed amount as a secured creditor. The ARC as such cannot be said to be performing public functions which are normally expected to be performed by the State authorities. During the course of a commercial transaction and under the contract, the bank/ARC lent the money to the borrowers herein and therefore the said activity of the bank/ARC cannot be said to be as performing a public function which is normally expected to be performed by the State authorities. If proceedings are initiated under the SARFAESI Act and/or any proposed action is to be taken and the borrower is aggrieved by any of the actions of the private bank/bank/ARC, borrower has to avail the remedy under the SARFAESI Act and no writ petition would lie and/or is maintainable and/or entertainable. Therefore, decisions of this Court in the cases of Praga Tools Corporation (supra) and Ramesh Ahluwalia (supra) relied upon by the learned counsel appearing on behalf of the borrowers are not of any assistance to the borrowers.

Since the petitioner is having statutory remedy before the

DRT, therefore, the writ petitions are not maintainable in view of

(3 of 3) [CW-11505/2021]

the judgment passed by the Hon'ble Supreme Court in the matter

of Phoenix ARC Private Limited (supra).

Hence, these writ petitions are accordingly dismissed.

(INDERJEET SINGH),J

MG/30-31