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Muhammedkutty v. State Bank of India

Kerala HC24 Mar 2009WP(C)/7789/2009

Case brief

AI extract

What is this about?

The Court quashed proceedings by the Sub Divisional Magistrate regarding issuance of an eviction notice, holding that only the District Magistrate has jurisdiction under Section 14 of the SARFAESI Act. The bank was directed to transmit the application to the District Magistrate and consider an instalment request contingent on the petitioner's deposit schedule.

What did the court decide?

Proceedings by the Sub Divisional Magistrate were quashed; the application was directed to be transmitted to the District Magistrate, and the bank was directed to consider an instalment facility if th

Muhammedkutty Vs State Bank of India — Banking and Recovery | Kerala HC (2009)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT :

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THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN

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TUESDAY, THE 24TH MARCH 2009 / 3RD CHAITHRA 1931

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WP(C).No. 7789 of 2009(P)

PETITIONER(S):

MUHAMMEDKUTTY, S/O.ALAVI, 39 YEARS, VARAMANGALATH HOUSE,KARAKKAD, KONDOORKARA, PATTAMBI, OTTAPALAM TALUK.

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BY ADV. SMT.T.D.RAJALAKSHMI SRI.R.SREEHARI

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RESPONDENT(S):

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STATE BANK OF INDIA,PATTAMBI BRANCH, PATTAMBI REPRESENTED BY ITS BRANCH MANAGER.

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THE AUTHORISED OFFICER,STATE BANK OF INDIA, REGIONAL OFFICE, PALAKKAD.

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SUB DIVISIONAL MAGISTRATE, OTTAPALAM.

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BY GP SRI K C SANTHOSH KUMAR

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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THOTTATHIL B RADHAKRISHNAN, J

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........................................... WP(C).NO. 7789 OF 2009

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DATED THIS THE 24TH DAY OF MARCH, 2009

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JUDGMENT

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The petitioner has two fold contentions. He says that the impugned action taken under Section 14 of SARFAESI Act, going by Ext.P1, issued by the third respondent, who is incompetent to do so, since it is only the District Magistrate, who could exercise the power under Section 14, is illegal. The second contention is that Ext.P3 representation to the bank for an instalment facility is not being considered. The fact that there is default in repayment of the loan amount is not disputed. The jurisdiction to invoke the provisions of SARFAESI Act is not under challenge. Obviously, therefore the limited question is only as to whether the third respondent Sub Divisional Magistrate was within the authority to act on the request of the bank under Section 14. The situation leading to Ext.P1 has been created by the District Magistrate forwarding the application of the bank to the Sub Divisional Magistrate. There is no delegation of power under Section 14 of SARFAESI Act. It has to be exercised by the District Magistrate.

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WP(C) 7789/2009

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Therefore by the force of this judgment, the proceedings of the Sub Divisional Magistrate including issuance of Ext.P1 will stand quashed and the Sub Divisional Magistrate is directed to forthwith transmit the bank's application forwarded to him, back to the District Magistrate, Palakkad and the other officer will carry out the necessary exercise under Section 14 in accordance with law.

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It is also directed that if the petitioner deposits an amount of Rs.1,00,000/- on or before 31.3.2009 and a further amount of Rs.1,50,000/- on or before 30.4.2009, the bank will consider Ext.P3 sympathetically.

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Writ petition ordered accordingly.

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THOTTATHIL B RADHAKRISHNAN, JUDGE

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lgk/26/3

Muhammedkutty v. State Bank of India

Case brief

What is this about?

What did the court decide?

Muhammedkutty v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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