Dismissed

M/S S S R Motors v. State Bank of India

Karnataka HC30 Aug 2024WP/27319/2023

Case brief

AI extract

What is this about?

High Court dismissed a writ petition challenging a sale notice under the SARFAESI Act. The Court held the petition was not maintainable due to the availability of an alternative remedy under Section 17 of the Act and reliance on Supreme Court precedent.

What did the court decide?

Writ petition dismissed as not maintainable due to alternative remedy under Section 17 of the SARFAESI Act.

M/S S S R Motors Vs State Bank of India — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:35193 WP No. 27319 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 30^TH DAY OF AUGUST, 2024

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BEFORE

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THE HON'BLE MR. JUSTICE K. V. ARAVIND

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WRIT PETITION No. 27319 OF 2023 (GM-RES)

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BETWEEN:

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M/S S S R MOTORS A PARTNERSHIP FIRM HAVING OFFICE AT SAIRAM COMPLEX, B.R. HILLS ROAD, RAMASAMUDRA TOWN CHAMARAJANGAR PIN CODE – 571 313 REP. BY ITS PARTNER SRI BHASKAR R.S. PARTNERSHIP FIRM, REGISTERED UNDER INDIAN PARTNERSHIP ACT, 1932.

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Digitally signed by VALLI MARIMUTHU Location: High Court of Karnataka

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SRI BHASKAR R.S. W/O SHIVASHANKARA ARADHYA AGED ABOUT 56 YEARS R/AT: #425, OLD POLICE STATION ROAD, RAMASAMUDRA CHAMARAJANGARA - 571 313.

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…PETITIONERS

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(BY SRI RAJANEESH C.M., ADVOCATE)

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AND:

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STATE BANK OF INDIA STRESSED ASSETS RECOVERY BRANCH (05173) BUILDING No. 11/90, III FLOOR NEAR OLD SHIVAJI THEATRE J.C. ROAD, BENGALURU - 560 002

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2 - NC: 2024:KHC:35193 WP No. 27319 of 2023

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PH. NO. 080-25943678, 25943663 EMAIL [email protected] REPRESENTED BY ITS AUTHORISED OFFICER.

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…RESPONDENT

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(BY SRI NANDISH PATIL, ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARING THAT ALL ACTION TAKEN BY THE RESPONDENT U/S 13(4) OF THE ACT AS AB-INITIO VOID AND ILLEGAL AND QUASH THE SALE NOTICE DTD 16.10.2023 ISSUED BY THE RESPONDENT THE AUTHORIZED OFFICER, STATE BANK OF INDIA, ASSET RECOVERY MANAGEMENT BRANCH, STRESSED ASSETS RECOVERY BRANCH, BENGALURU VIDE ANNEXUREX‘A’ AND ALL FURTHER ACTIONS TAKEN IN PURSUANT THERETO & ETC.

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THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE K V ARAVIND

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ORAL ORDER

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Heard, Sri Rajaneesh C.M., learned counsel appearing for petitioners, Sri Nandish Patil, learned counsel appearing for respondent.

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The petitioners have called in question the sale notice dated 16.10.2023 issued under Section13(4) of the Securitization and Reconstruction of Financial Assets and

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3 - NC: 2024:KHC:35193 WP No. 27319 of 2023

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Enforcement of Security Interest Act, 2002 (for short "SARFAESI Act").

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Learned counsel for the respondent-Bank submits that the petitioners have a remedy under Section 17 of SARFAESI Act. He submits that pursuant to the sale notice dated 16.10.2023, the property in question has been sold and sale is confirmed. He further submits that in view of the changed circumstances, the petition would not survive for consideration.

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Considered submissions of learned counsel for the parties.

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The petitioners have remedy under Section 17 of the SARFAESI Act. In view of the alternative remedy and in view of the judgment of the Hon’ble Supreme Court in the case of United Bank of India vs. Satyawati Tandon and others [2010 (8) SCC 110] , the writ petition is not maintainable.

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NC: 2024:KHC:35193 WP No. 27319 of 2023

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Accordingly, writ petition is dismissed as not

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maintainable.

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Sd/(K. V. ARAVIND) JUDGE

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CR List No.: 1 Sl No.: 54