Disposed

Mr Prem Kumar v. the National Co-Operative Bank Limited

Karnataka HC21 Dec 2023WP/24885/2022

Case brief

AI extract

What is this about?

Tenants challenged the possession notice issued under Section 13(4) of the SARFAESI Act, 2002 via a writ petition. The court dismissed the petition on the condition that Petitioners participate in the auction and yield possession to the successful bidder, treating their agreement as a binding undertaking.

What did the court decide?

Petition disposed on undertaking to participate in auction and yield possession to the successful bidder; coercive proceedings permitted to continue.

Mr Prem Kumar Vs the National Co-Operative Bank… — Writ and Judicial Review | Karnataka HC (2023)

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1 - NC: 2023:KHC:46643 WP No. 24885 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 21^ST DAY OF DECEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE KRISHNA S DIXIT

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WRIT PETITION NO. 24885 OF 2022 (GM-RES)

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BETWEEN:

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MR. PREM KUMAR, S/O MARTHAPPA, AGED ABOUT 60 YEARS, S A ARCADE FLAT NO 101, SENIOR CITIZENSHIP BENEFIT NOT CLAIMED

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MR. BHEEMASENA P, S/O RUDRAPPA, AGED ABOUT 32 YEARS, S A ARCADE FLAT NO 103

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MR. KOUSHAL R S/O RAVEENDRA A, AGED ABOUT 36 YEARS, S A ARCADE FLAT NO 104,

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Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA

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MR. SURESH M N, S/O LATE NAGEGOWDA, AGED ABOUT 39 YEARS, S A ARCADE FLAT NO 105

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MR. VINAYAKA MURTHY, S/O LATE KUMAR SWAMY, AGED ABOUT 62 YEARS, S A ARCADE FLAT NO 201, SENIOR CITIZEN BENEFIT NOT CLAIMED

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MR. SHINOY GEORGE NELLIKKAL, S/O ABRAHAM GEORGE, AGED ABOUT 39 YEARS, S A ARCADE FLAT NO 202 & 203,

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2 - NC: 2023:KHC:46643 WP No. 24885 of 2022

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MR PRAKASH T L, S/O LAKSHMANA, AGED ABOUT 35 YEARS, S A ARCADE FLAT NO 204,

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MR. SUMAN C S/O P CHANDRASHEKAR, AGED ABOUT 28 YEARS, S A ARCADE FLAT NO 301,

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MR. KRISHNAMURTHY, S/O K V ASWATHNARAYANA, AGED ABOUT 54 YEARS, S A ARCADE FLAT NO 06, 2^ND FLOOR, FLAT NO 302.

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SMT. MAMATHA, W/O LOKESHAPPA, AGED ABOUT 34 YEARS, S A ARCADE FLAT NO. 303,

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MR. A NAVEN KUMAR, S/O ANANDARAJ N, AGED ABOUT 36 YEARS, S A ARCADE FLAT NO. 304,

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MR. HALAPPA T R, S/O RANGASWAMY, AGED ABOUT 40 YEARS, S A ARCADE FLAT NO 401 & 405,

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MR. D VISWANATHA, S/O KONAIAH, AGED ABOUT 32 YEARS, S A ARCADE FLAT NO. 403,

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MR. BIPLAB BAWALI, S/O JAGADISH BAWALI, AGED ABOUT 34 YEARS, S A ARCADE FLAT NO. 404,

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FALGUNI PIRI W/O BISWANATH PIRI, AGED ABOUT 33 YEARS, S A ARCADE FLAT NO. 501,

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3 - NC: 2023:KHC:46643 WP No. 24885 of 2022

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MR. RAGHU N R, S/O RAMEGOWDA, AGED ABOUT 42 YEARS, S A ARCADE FLAT NO. 502,

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MR. SURESH KUMAR, S/O JAYAPPA, AGED ABOUT 44 YEARS, S A ARCADE FLAT NO.503,

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MR. YOGESH C, S/O CHANDRU K, AGED ABOUT 30 YEARS, S A ARCADE FLAT NO. 504,

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ALL ARE RESIDING AT S A ARCADE, NO. 6,1^ST CROSS, 12-A MAIN ROAD, KAVERI NAGARA, NEAR KAILASH BUILDING, DEVARACHIKKANAHALLI MAIN ROAD, BOMMANAHALLI, BENGALURU - 560 068.

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…PETITIONERS

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(BY SRI. PRASAD HEGDE K.,ADVOCATE)

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AND:

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THE NATIONAL CO-OPERATIVE BANK LIMITED RAJARAJESHWARI NAGAR BRANCH, NO. 73/1, GANDHI BAZAAR MAIN ROAD, BANGALORE. REP BY ITS CHIEF EXECUTIVE OFFICER

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SWARNA BHARATHI CO-OPERATIVE BANK LTD., NO 2229, 23^RD CROSS, BANASHANKARI 2^ND STAGE, BANGALORE - 560 070. REP BY ITS CHIEF EXECUTIVE OFFICER

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MR. RAJESH, AGED ABOUT 49 YEARS, S/O SRI. RAMAMURTHY V,

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NC: 2023:KHC:46643 WP No. 24885 of 2022

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SMT. NAGAVALLI, AGED ABOUT 44 YEARS, W/O SRI RAJESH,

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BOTH ARE RESIDING AT NO.42, 3^RD FLOOR, ANANDA GOKUL, 7^TH MAIN ROAD, 3^RD CROSS, RAMANJINEYA NAGAR, BANGALORE- 560 061.

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…RESPONDENTS

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(BY SRI.K V LOKESH., ADVOCATE FOR R1; SRI.L T GOPAL., ADVOCATE FOR R2)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE POSSESSION NOTICE DATED 20.09.2022 ISSUED BY THE R1 UNDER SEC 13(4) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSET AND ENFORCEMENT OF SECURITY INTEREST ACT 2002 AS PER ANNEXURE A AND DIRECT THE R1 AND R2 TO FURNISH THE DOCUMENTS ISSUED BY THE RESPONDENT BANK UNDER THE PROVISIONS OF SARFAESI ACT FOR TAKING POSSESSION OF THE SCHEDULE PROPERTY TO THE PETITIONERS, ENABLE THE PETITIONERS TO FILE APPEAL BEFORE DEBT RECOVERY TRIBUNAL UNDER THE PROVISIONS OF SARFAESI ACT AND DIRECT R1 AND R2 RESPONDENTS NOT TO DISPOSSESS THE PETITIONERS FROM THE SCHEDULE PROPERTY INITIATION OF RECOVERY PROCEEDINGS AND DIRECT THE R3 AND R4 TO PAY THE LEASE AMOUNT PAID BY THE PETITIONERS FROM RECOVERY AMOUNT TO THE PETITIONERS AND VACATE THE PETITIONER FROM THE SCHEDULE PROPERTY.

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THIS PETITION, COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

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5 - NC: 2023:KHC:46643 WP No. 24885 of 2022

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ORDER

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The challenge in this Petition is to the coercive proceedings of loan recovery instituted under the Provisions of SARFAESI Act, 2002. learned panel Counsel appearing for the Respondent – Bank submits that in view of a catena of decisions of the Apex Court and more particularly, the amendment done to Section 17 of the Act, it is not open to the tenants to take recourse to the provisions of Article 226 & 227 of the Constitution of India against loan recovery. Having so contended, now he graciously agrees with the suggestion of this Court that the auction proceedings and taking possession of subject property that were interdicted by the Coordinate Bench, be permitted to go on and the Petitioners may also be permitted to participate in the auction. Learned counsel appearing for the Petitioners also in equal measure of grace agrees that his clients would yield possession of subject property to the person who emerges victorious in the contemplated public auction.

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6 - NC: 2023:KHC:46643 WP No. 24885 of 2022

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With the above observations, this Petition is disposed

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off treating the submission made on behalf of the Petitioners as an undertaking given to this Court, violation of which would amount to gross contempt.

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In view of the above, it is open to the RespondentBank to proceed with the coercive proceedings as before

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in accordance with law.

Costs made easy.

Sd/JUDGE

Bsv

List No.: 1 Sl No.: 2

Mr Prem Kumar v. the National Co-Operative Bank Limited

Case brief

What is this about?

What did the court decide?

Mr Prem Kumar v. the National Co-Operative Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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