The High Court dismissed a writ petition challenging a Notice under Section 13(2) of the SARFAESI Act. The court held that such notices are not justiciable at the issuance stage and direct petitioners to approach the Debts Recovery Tribunal under Section 13(4) if challenged.
Petition disposed of; no order as to costs; WMP No.23318 of 2021 closed.
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: 20.10.2021
CORAM :
THE HON'BLE MR.SANJIB BANERJEE, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE P.D.AUDIKESAVALU
WP No.22098 of 2021
... Petitioners
-vs-
Prayer: Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus calling for the records of the 1st and 2nd respondents in Loan A/C No. 062884600000180 which classified as Non-Performing asset and quash the same ii) issue a direction to the 1st and 2nd respondents to receive objection / explanations from the petitioners iii) directing the 1st and 2nd respondents to restructure the loan A/C No. 062884600000180 and allow the petitioners to continue the repayment of the said loan facility on such completion of repayment the respondents 1 and 2 may be directed to enter private treaty to convey the mortgaged property in favour of the petitioners
For the Petitioners : Mr.J.Kamaraj
ORDER
(Order of the Court was made by The Hon'ble Chief Justice)
The petitioners claim certain rights over an immovable property that has apparently been mortgaged in connection with credit facilities obtained by one S.Murugesan as the Proprietor of Navaneetham Industries. The first petitioner is the wife of the said Murugesan and the second petitioner is the son. The immediate cause for approaching this Court is the receipt of a notice in the name of Murugesan issued by YES Bank on August 26, 2021.
WP No.22098 of 2021 is disposed of. There will be no order as to costs. WMP No.23318 of 2021 is closed.
Sd/Assistant Registrar(CS-V)
//True Copy//
Sub Assistant Registrar
sra
WP No.22098 of 2021
SJ(CO) SU(26/10/2021)
2 issues framed by the court
Whether a writ petition challenging a Section 13(2) notice under the SARFAESI Act is maintainable before the High Court at the issuance stage.
Whether principals mortgagors who are joint owners can restrain a bank from issuing a Section 13(2) notice regarding mortgaged property.
4 provisions across 2 enactments
M.Vijaya
M. Arunkumar
Yes Bank Limited
S.Murgesan
Sanjib Banerjee
P.D.Audikesavalu
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
