Allowed

J.Kannaki v. Union of India

Madras HC7 Mar 2024WP/33259/2019

Case brief

AI extract

What is this about?

Petitioner challenged a possession notice issued under SARFAESI Act by Repco Bank. Division Benches previously held co-operative societies cannot invoke the Act. Petitioner sought quashing of notice under Article 226. The Bench allowed the writ and quashed the notice.

What did the court decide?

The writ petition was allowed and the possession notice dated 10.09.2019 issued under Section 13(12) of the SARFAESI Act was quashed.

J.Kannaki Vs Union of India — Banking and Recovery | Madras HC (2024)

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W.P.NO.33259 OF 2019

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 07.03.2024

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CORAM:

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THE HONOURABLE MR. JUSTICE R.SUBRAMANIAN AND

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THE HONOURABLE MR. JUSTICE R.SAKTHIVEL

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W.P.NO.33259 OF 2019 AND WMP NO.33723 OF 2019

J.Kannaki

... Petitioner

Vs.

1.Union of India

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Rep. by its the Joint Secretary /

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Central Registrar of Co-operative Societies

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Ministry of Agriculture

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Krishi Bhavan, Rajendra Prasad Road, New Delhi – 110 001.

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2.Reserve Bank of India

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Rep. By its Principal Chief Manager Department of Co-operative Bank Regulation Garmet House, Dr.Annie Besant Road,

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Mumbai – 400 018.

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3.The Repatriates Co-operative Finance and

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Development Bank Ltd. (Repco Bank) Represented by its Managing Director Head Office – No.33, North Usman Road, T.Nagar, Chennai – 600 017.

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1/5

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https://www.mhc.tn.gov.in/judis

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W.P.NO.33259 OF 2019

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4.The Repatriates Co-operative Finance and Development Bank Ltd. (Repco Bank) Represented by its Authorized Officer Plot No.2, M.K.B.Nagar, West Avenue, Vyasarpadi, Chennai – 600 039. ... Respondents

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PRAYER: Writ Petition filed under Article 226 of the Constitution of th India, praying to issue a Writ of Certiorari, to call for the records of the 4 respondent dated 10.09.2019 possession notice issued under SARFAESI Act and quash the same as the Repco Bank is not legally entitled to invoke the provisions of SARFAESI Act.

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For Petitioner : Mr.B.Ullasavelan For Respondents 1 & 2 : Not ready in notice For Respondents 3 & 4 : No appearance

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O R D E R

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Respondents 1 and 2 are not served. Despite service, none

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appears for the respondents 3 and 4.

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2.Challenge in this writ petition is to the possession notice

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issued under Section 13(12) of the Securitisation Reconstruction of

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Financial Assets and Enforcement of Security Interest Act, 2002 read with

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Rule 8 of the Security Interest (Enforcement) Rules, 2002.

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2/5 https://www.mhc.tn.gov.in/judis

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W.P.NO.33259 OF 2019

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3.A Division Bench of this Court in S.P.GANESAN VS. THE

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AUTHORISED OFFICER, REPCO BANK [W.P.No.33133 of 2019

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decided on 03.03.2021] had held that the respondent Bank being a

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Co-operative Society cannot invoke the provisions of the SARFAESI Act.

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4.In view of the said pronouncement of the Division Bench of

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this Court, the writ petition stands allowed. The impugned possession

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notice dated 10.09.2019 issued under Section 13(12) of the Securitisation

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Reconstruction of Financial Assets and Enforcement of Security Interest

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Act, 2002 read with Rule 8 of the Security Interest (Enforcement) Rules,

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2002 is quashed. No costs. Consequently, connected miscellaneous petition

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is closed.

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[R.S.M., J.] [R.S.V., J.] 07.03.2024 Index : Yes / No Internet : Yes / No Neutral Citation : Yes / No Speaking Order / Non-speaking Order TK 3/5

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https://www.mhc.tn.gov.in/judis

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W.P.NO.33259 OF 2019

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1.The Joint Secretary /

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Central Registrar of Co-operative Societies Union of India Ministry of Agriculture Krishi Bhavan, Rajendra Prasad Road, New Delhi – 110 001.

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2.The Principal Chief Manager Reserve Bank of India Department of Co-operative Bank Regulation Garmet House, Dr.Annie Besant Road, Mumbai – 400 018.

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3.The Managing Director

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The Repatriates Co-operative Finance and Development Bank Ltd. (Repco Bank) Head Office – No.33, North Usman Road, T.Nagar, Chennai – 600 017.

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4.The Authorized Officer

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The Repatriates Co-operative Finance and Development Bank Ltd. (Repco Bank) Plot No.2, M.K.B.Nagar, West Avenue, Vyasarpadi, Chennai – 600 039.

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4/5 https://www.mhc.tn.gov.in/judis

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W.P.NO.33259 OF 2019

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R.SUBRAMAR.SUBRAMANIAN, J.

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ANAND R.SAKTHIVEL, J.

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W.P.NO.33259 OF 2019

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07.03.2024

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J.Kannaki v. Union of India

Case brief

What is this about?

What did the court decide?

J.Kannaki v. Union of India

Case brief

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What did the court decide?

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