Dismissed

V.S. Timber Industries, v. the Canara Bank Limited, Having Is Head Office at NO.112

Kerala HC11 Jun 2024WP(C)/12928/2023

Case brief

AI extract

What is this about?

The petitioner sought to set aside a SARFAESI Act notice and direction to the bank to proceed with the sale of secured property. Found that the sale has already been effected and possessed by a third party. Held that for setting aside such a sale, the petitioner must approach the Debts Recovery Tribunal. Writ petition dismissed with liberty to approach the DRT.

What did the court decide?

Writ petition dismissed granting liberty to the petitioner to approach the Debts Recovery Tribunal if advised.

V.S. Timber Industries, Vs the Canara Bank… — Contract and Commercial Disputes | Kerala HC (2024)

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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 N.NAGARESH
TUESDAY, THE 11TH DAY OF JUNE 2024 / 21ST JYAISHTA, 1946
WP(C) NO. 12928 OF 2023

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PETITIONER:

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V.S. TIMBER INDUSTRIES,
HAVING ITS ADDRESS AT: H.O. PERUMATTOM,
PUTHUPPADY P.O., MUVATTUPUZHA, ERNAKULAM,
KERALA, PIN - 686 673 REPRESENTED BY ITS
MANAGING PARTNER, MR. SHEHIN V.S.,

¶6

BY ADVS.
KARTHIKA MARIA
SANTHOSH MATHEW
ARUN THOMAS
ANIL SEBASTIAN PULICKEL
ABI BENNY AREECKAL
MATHEW NEVIN THOMAS
KURIAN ANTONY MATHEW
ANEETA MARY SAJI
DIANA LAURANCE PAUL

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RESPONDENTS:

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1 THE CANARA BANK LIMITED, HAVING IS HEAD OFFICE AT NO.112,

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J C ROAD, BENGALURU, KARNATAKA REPRESENTED BY ITS MANAGING DIRECTOR, PIN - 560 002

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2 THE AUTHORISED OFFICER, THE CANARA BANK LIMITED KODUVALLY BRANCH, KP 313-NPS, GROUND FLOOR, FORTUNE MALL, OPP. BUS STAND, NARIKUNI ROAD, KODUVALLY P.O, CALICUT, PIN - 673 572

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3 ZORO INTERNATIONAL, HAVING ITS ADDRESS AT ; KP 14/1030, KUNNAMANGALAM, CALICUT, KERALA , REPRESENTED BY ITS PROPRIETOR, MR. NAMSHAJ C.N., PIN - 673 571

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4 NAMSHAJ C.N, AGED 53 YEARS S/O AHAMMED KUTTY HAJI, THE PROPRIETOR, M/S ZORO INTERNATIONAL, HAVING ITS ADDRESS AT: KP 14/1030, KUNNAMANGALAM, CALICUT, KERALA, PIN - 673 571

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WP(C) No.12928 of 2023

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: 2 :

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5 NOUFAL N, AGE NOT KNOWN TO THE PETITIONER, S/O MUHAMMED, NEDUMKANDATHIL, KUNNAMANGALAM P.O, CALICUT, KERALA, PIN - 673 572

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6 UMMAYYA, AGE NOT KNOWN TO THE PETITIONER, W/O AYAMATH KUTTY, PALLURUKUNNUMAL, THAMARASSERY, CALICUT, KERALA, PIN - 673 573

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7 SAINABA, AGE NOT KNOWN TO THE PETITIONER, W/O MUHAMMED, NEDUMKANDATHIL, KUNNAMANGALAM, CALICUT, KERALA, PIN - 673 571 BY ADVS. ANIRUDH KADAVIL M.J.RAJASREE(K/330/1994) K.V.ANIL(K/000230/1980)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
11.06.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:

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WP(C) No.12928 of 2023

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: 3 :

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JUDGMENT

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Dated this the 11^th day of June, 202 4

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The petitioner, who availed a financial assistance from the Canara Bank Limited, has filed this writ petition seeking to set aside Ext.P3 notice wherein the secured property is being auctioned on 11.04.2023.

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The petitioner also sought to direct the 1^st respondent to consider Ext.P4 representation and to direct respondents 1 and 2 to proceed with sale of Item No.2 property for the discharge of the liability.

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During the course of hearing, the Standing Counsel appearing for the respondents submitted that the secured asset has already been subjected to sale by the Bank and the property is now possessed by a third party.

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Respondents 1 and 2 have filed a statement indicating the name and other particulars of the purchaser.

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After considering the afore facts, I am of the view that for getting any relief in respect of the secured asset, the petitioner has to get the Sale set aside. For setting aside the Sale pursuant to a Sale

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WP(C) No.12928 of 2023

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: 4 :

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Notification under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, the petitioner has to approach the Debts Recovery Tribunal.

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In view of the afore facts, this writ petition is dismissed granting liberty to the petitioner to approach the Debts Recovery Tribunal, if the petitioner is so advised.

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Sd/N. NAGARESH JUDGE

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SSG

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WP(C) No.12928 of 2023

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: 5 :

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APPENDIX OF WP(C) 12928/2023

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PETITIONER'S EXHIBITS

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Exhibit P1TRUE COPY OF ATTACHMENT SCHEDULE IN C.S.
NO. 14/2023 BEFORE THE HONOURABLE
COMMERCIAL COURT, MUVATTUPUZHA

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Exhibit P2TRUE COPY OF THE ATTACHMENT ORDER OF THE
HONOURABLE COMMERCIAL COURT, MUVATTUPUZHA
IN C.S. NO. 14 OF 2023

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Exhibit P3TRUE COPY OF THE NOTICE UNDER SECTION
13(4) OF THE SARFAESI ACT, 2002 READ WITH
RULE 8(6) OF THE SECURITY INTEREST
(ENFORCEMENT)RULES,2002BEARING
REFERENCE NO.3487/EAUCT/042023/ZORO DATED
01.03.2023.

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Exhibit P4TRUE COPY OF LETTER DATED 05.04.2023
SUBMITTED BY THE PETITIONER TO THE 1ST
RESPONDENT BANK.

V.S. Timber Industries, v. the Canara Bank Limited, Having Is Head Office at NO.112

Case brief

What is this about?

What did the court decide?

V.S. Timber Industries, v. the Canara Bank Limited, Having Is Head Office at NO.112

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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