Disposed

Canara Bank v. PNB Housing Finance Limited

Karnataka HC7 Feb 2024WP/1082/2024

Case brief

AI extract

What is this about?

The petitioner, a bank tenant, sought to quash a pre-intimation notice for evicting its branch premises, arising from security interest proceedings against the owner-borrowers. The Court granted time for vacating the premises until May 31, 2024, while keeping SARFAESI proceedings pending.

What did the court decide?

Petition dismissed. First respondent not to disturb petitioner's possession till 31-05-2024. Proceedings under SARFAESI Act against borrower continue.

Canara Bank Vs PNB Housing Finance Limited — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:5144 WP No. 1082 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 7^TH DAY OF FEBRUARY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA

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WRIT PETITION NO. 1082 OF 2024 (GM-RES)

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BETWEEN:

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CANARA BANK MID CORPORATE BRANCH NO.34, 1ST MAIN ROAD SHESHADRIPURAM BENGALURU - 560 020 REP BY ITS MR. ARUN KUMAR C.K.

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…PETITIONER

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(BY SRI VIKRAM UNNI RAJAGOPAL, ADV.)

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AND:

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PNB HOUSING FINANCE LIMITED A HOUSING FINANCE CO. REGISTERED UNDER THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT 9TH FLOOR, ANTRIKSH BHAWAN, 22 KASTURBA GANDHI MARG

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Digitally signed by PADMAVATHI B K Location: HIGH COURT OF KARNATAKA

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NEW DELHI - 110 001, AND HAVING BRANCH OFFICE AT PRESTIGE EMERALD BUILDING, 3RD FLOOR, LAVELLE ROAD BENGALURU-01 REP BY ITS MANAGER.

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SRI BALAJI AND CO., A PARTNERSHIP FIRM NO.34, J. LINGAIAH ROAD 1ST MAIN, SESHADRIPURAM BENGALURU - 560 020 BY ITS PARTNER.

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SRI S.K. DEVENDRA S/O LATE KRISHNA RAJU AGED MAJOR NO.444, 11TH CROSS

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NC: 2024:KHC:5144 WP No. 1082 of 2024

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SADASHIVANAGAR BENGALURU - 80.

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SMT. S.R. BHAGYA

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FATHERS NAME NOT KNOWN AGED MAJOR, NO.444, 11TH CROSS SADASHIVANAGAR, BENGALURU - 560 080.

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…RESPONDENTS

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(BY SRI SURESH V, ADV. FOR R1)

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THIS WP IS FILED PRAYING TO QUASH THE PRE- INTIMATION NOTICE DATED 05/01/2024 PERTAINING TO HOME LOAN ACCOUNT NO. HOU/MRH/1217/463483 ISSUED BY R1 (ANNEXURE-A).

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

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ORDER

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The petitioner is before this Court, seeking for the

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following prayer:-

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"i. Quash the Pre-intimation notice dated 05.01.2024 pertaining to Home Loan Account No. HOU/MRH/1217/463483 issued by Respondent No.1 (Annexure-A).

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ii. Direct the Respondent No.1 not to take coercive measures as against the Petitioner in relation to the Schedule B Property;

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iii. Award costs of the proceedings:

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iv. Grant such other order (s) as this Hon'ble Court deems fit under the facts and

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3 - NC: 2024:KHC:5144 WP No. 1082 of 2024

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circumstances of the case, in the interest of justice."

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Heard Sri. Vikram Unni Rajagopal, learned counsel for the petitioner and Sri. Suresh V, learned counsel for first respondent.

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The petitioner-Canara Bank is a tenant in the premises owned by respondent Nos.2 to 4, who have borrowed finance from first respondent. The loan becoming sticky leads to first respondent initiating proceedings against borrower invoking the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the SARFAESI Act' for short). The petitioner was sought to be evicted at that point in time and therefore, the petitioner has knocked the doors of this Court.

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Learned counsel for the petitioner has placed an affidavit of the petitioner of the timeline in which they

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NC: 2024:KHC:5144 WP No. 1082 of 2024

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would vacate the premises and shift to a new premises. The affidavit reads as follows:-

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"AFFIDAVIT

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I, Arun Kumar C. K., Son of Channaiah M, aged about 39 years, Manager, Canara Bank, Mid Corporate Branch, No. 34, 1st Main Road, Sheshadripuram, Bengaluru-560020 do hereby solemnly affirm and state on oath as follows:

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1. I am the authorised signatory of the Petitioner in the captioned matter. I am aware of the facts of the case and am competent to depose to matters pertaining thereto.

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2. The Petitioner has preferred the present writ petition being aggrieved by the pre-intimation notice dated 05.01.2024 issued by Respondent No. 1 to Respondent Nos. 2 to 4 marking a copy to the Petitioner. By the impugned notice, Respondent No.1 has called upon Respondent Nos. 2 to 4 to deliver vacant possession of all that is piece and parcel of commercial space in entire basement, ground, first and second floor each measuring 2800 Sq. ft. with proportionate undivided share over the property bearing No. 34, 34/1, 34/3, J. Lingalah Road, 1 Main, Sheshadripuram, Bengaluru-560020 ("Schedule A Property") on or before

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NC: 2024:KHC:5144 WP No. 1082 of 2024

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11.01.2024, failing which the Respondent No.1 will take possession over the same after 13.01.2024.

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3. This Hon'ble Court vide interim order dated 10.01.2024 stayed the operation of Impugned Notice and directed the bank to deposit 15 lakhs with the Respondent No.1. In Compliance of the said order, the Petitioner has deposited 15 lakhs with the Respondent No. 1 through NEFT on 24.01.2024.

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4. I state that the Petitioner has identified alternative premises for its branch and is in the process of commencing fit out. Therefore, the Petitioner would require time up to 31.05.2024 in order to shift to the new premises and undertakes to vacate the Schedule B Property by 31.05.2024.

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Wherefore, it is prayed that this Hon'ble Court may be pleased to receive the present affidavit on record in the interests of justice.

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Bengaluru Sd/Date: 07.02.2024 DEPONENT"

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It is needless to observe that the petitioner would be

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bound by the contents of the affidavit and would abide by it. First respondent Bank shall not disturb the possession

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of the petitioner upto 31.05.2024. The protection granted

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NC: 2024:KHC:5144 WP No. 1082 of 2024

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to the tenant i.e., Canara Bank would not mean that the proceedings under SARFAESI Act pending before any forum is stayed. The said proceedings shall go on against the borrower. The rent i.e., paid by the Bank/petitioner to the borrower and arrears of rent, if any, shall be directly

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paid to the first respondent/Bank upto 31.05.2024.

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With the aforesaid observations, the petition stands disposed.

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Sd/JUDGE

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Canara Bank v. PNB Housing Finance Limited

Case brief

What is this about?

What did the court decide?

Canara Bank v. PNB Housing Finance Limited

Case brief

What is this about?

What did the court decide?

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