Borrower challenged SARFAESI notices classifying its loan account as non-performing asset, seeking quashing of notices and regularisation. The court held the writ petition not maintainable given the efficacious alternative remedy before the Debt Recovery Tribunal under Section 17 and dismissed it with liberty to approach the Tribunal.
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WP.No.21457 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 01.08.2024
CORAM:
THE HONOURABLE MR.JUSTICE S.S.SUNDAR
AND
THE HONOURABLE MR.JUSTICE N.SENTHILKUMAR
WP.No.21457 of 2024 WMP.No.23222 of 2024
M/s.Coral Steel, Chennai-118
Petitioner
Vs
Prayer:- This Writ Petition has been filed, under Article 226 of the Constitution of India, for issuance of Writ of Certiorarified Mandamus to call for the records of the impugned notices dated 01.03.2024 and 15.05.2024 issued by the 1st Respondent under Section 13(2) and 13(4) of the SARFAESI Act, which classify the Petitioner's loan account No.125003223645 as Non Performing Asset and to quash the same and consequently to direct the 1st Respondent to pass orders on the objection
WP.No.21457 of 2024
dated 06.03.2024 of the Petitioner to regularize his account. For Petitioner : Mr.N.Manoharan
For Respondents : Mr.P.Raghunathan
ORDER
(Order of the Court was made by S.S.SUNDAR, J.)
Mandamus to call for the records of the impugned notices dated 01.03.2024 and 15.05.2024 issued by the 1st Respondent under Sections 13(2) and 13(4) of the SARFAESI Act, after classifying the Petitioner's loan account No.125003223645 as a Non Performing Asset and to quash the same and consequently to direct the 1st Respondent to pass orders on the objection dated 06.03.2024 of the Petitioner to regularize his account.
WP.No.21457 of 2024
account from standard one to Non Performing Asset. The Petitioner wanted some time to regularise the account. The Petitioner has raised a few other grounds, which cannot be entertained as the Petitioner has an efficacious alternative remedy of filing an application under Section 17 of the SARFAESI Act before the Debt Recovery Tribunal and hence, this Writ Petition is not maintainable.
(S.S.S.R.J.) & (N.S.J.) 01.08.2024 Index:Yes/No Web:Yes/No Speaking/Non Speaking Neutral Citation Srcm
To
WP.No.21457 of 2024
S.S.SUNDAR, J. and N.SENTHILKUMAR, J.
Srcm
WP.No.21457 of 2024
01.08.2024
1 issue framed by the court
Whether a writ petition challenging NPA classification under Sections 13(2) and 13(4) of the SARFAESI Act is maintainable when an alternative remedy exists under Section 17.
3 provisions across 2 enactments
M/s.Coral Steel, Chennai-118
The Canara Bank, by its Chief Manager Chennai-21
The Branch Manager, Canara Bank, Chennai-21
The Authorised Officer, Canara Bank Chennai-21
S.S.Sundar
N.Senthilkumar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
