Petitioner challenged auction sale notice for non-compliance with SARFAESI Act notice provisions. Borrower later offered to discharge liability. Court held the sale notice quashing prayer is infructuous and relitized petitioner to work out remedy with the Bank regarding document release.
No further directions to release documents; case disposed of.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 9/2/2017
C O R A M
The Honourable Mr.Justice S.Manikumar and The Honourable Mr.Justice M.Govindaraj
Writ Petition No.4598 of 2015
P. Tamizharasan ... Petitioner
Vs
1. The Manager
ICICI Home Finance Company Limited
Arihant Insight
Plot No.24 Block No.1
Ambattur Industrial Estate
Chennai 600 053.
2. The Manager
ICICI Home Finance Company Limited
No.6, 1st Main Road
3rd Floor, Kasturibai Nagar
Kalyanlakshmi Buildings
Adyar
Chennai 600 020.
3. The General Manager (Home Loan)
Race Course Circle
Vadodara 390 007
Gujarat State.
4. The Manager
The Asset Reconstruction Company (India) Ltd
No.715 - C 7th Floor
Spencer's Plaza, Phase Ii
769 Anna Salai
Chennai 600 002.
5. The Union of India
rep. by its Secretary
Ministry of Finance
New Delhi. ... Respondents
Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of certiorarified mandamus to call for the concerned record in his proceedings No.Nil. dated 23/1/2015 passed by the fourth respondent herein and to quash the same and consequently direct the first respondent to "Receive the Balance Loan Amount with its interest as per the loan sanction letter bearing No.1285292 for LAN LBCHE00000819438 and to Release the Original Documents" of the petitioner house, including the ground to an extent of 4360 Sq. ft in S.No.24/1 (Old Survey No.253/1ABC) situated in Mailam Village, Tindivanam Taluk, Villupuram District.
Borrower has challenged the sale notice, dated 23/1/2015, issued by the Manager, Asset Reconstruction Company (India) Ltd., Chennai/fourth respondent and consequently, prayed for a direction to the Manager, ICICI Home Finance Company Limited, Chennai/first respondent, to receive the balance loan amount with interest, as per loan sanction letter, bearing No.1285292 for LAN LBCHE00000819438. Borrower has also prayed for a direction, to release the original documents of his house including the ground, to an extent of 4360 Sq.ft, in S.No.24/1 (Old Survey No.25/1ABC), situated in Mailam Village, Tindivanam Taluk, Villupuram District.
“The case of the petitioner before us, is that the fourth respondent has put the property of the petitioner on auction without issuing a requisite notice under Clause (6) of Rule 8 of the Security Interest (Enforcement) Rules, 2002 and also
before putting the property in question for auction, no notice as contemplated under Section 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, had been issued.
“The petitioner is willing to discharge the liability. In that view, we are adjourning the matter by four weeks to enable the Bank as well as the petitioner to sit together and settle the issues. Call on after four weeks.”
sale. In so far as the second portion of the prayer sought for in the writ petition is concerned, it is for the petitioner to work out his remedy with the Bank. Therefore, we are not inclined to issue any further directions.
Sd/-
Assistant Registrar
//True Copy//
Sub Assistant Registrar
mvs.
Index: yes/No
website: Yes/No
To
2 issues framed by the court
Whether the writ petition regarding non-issuance of notice under the SARFAESI Act and Rules before auction sale can be entertained after the borrower agreed to discharge liability.
Whether the first prayer to quash the sale notice survives as it has become infructuous in view of the interim stay order.
3 provisions across 3 enactments
P. Tamizharasan
The Manager, ICICI Home Finance Company Limited
The Manager, The Asset Reconstruction Company (India) Ltd
The Union of India
S.Manikumar
M.Govindaraj
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
