Dismissed

M/s. Janata Seva and Cold Storage Pvt. Ltd., v. State Bank of India

Telangana HC17 Feb 2014WP/30256/2010

Case brief

AI extract

What is this about?

The High Court dismissed a writ petition challenging a Debts Recovery Tribunal order dismissing the petitioner's appeal against a bank auction. The court held alternative remedy under the SARFAESI Act barred writ jurisdiction, but directed suspension of possession delivery pending appeal.

What did the court decide?

Petitioner directed to file appeal under Section 17 of SARFAESI Act; Bank directed not to deliver possession till expiry of time for filing appeal.

M/s. Janata Seva and Cold Storage Pvt. Ltd., Vs State… — Banking and Recovery | Telangana HC (2014)

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THE HON’BLE SRI JUSTICE GHULAM MOHAMMED AND

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THE HON’BLE SRI JUSTICE N.RAVI SHANKAR

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Writ Petition No.30256 OF 2010

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03-12-2010

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Between:

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M/s.Janata Seva and Cold Storage Pvt. Ltd., Ankireddypalem.

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……….Petitioner

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And

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State Bank of India, rep. by its Authorised officer, Guntur and another.

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………Respondents

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THE HON’BLE SRI JUSTICE GHULAM MOHAMMED AND

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THE HON’BLE SRI JUSTICE N.RAVI SHANKAR

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Writ Petition No.30256 OF 2010

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ORDER : (Per Hon’ble Sri Justice Ghulam Mohammed)

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This writ petition is filed challenging the order dated

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26-11-2010 in S.A.No.277 of 2009 on the file of the Debts Recovery Tribunal, Hyderabad, wherein the Tribunal dismissed the said appeal which

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was filed to declare the action of the 1st respondent Bank in conducting auction of the schedule property pursuant to the notice dated 23-03-2009 and issuing the Sale Certificate dated 12-05-2009 in favour of the 2nd respondent as arbitrary and illegal.

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2. The petitioner has raised several questions with regard to the valuation certificate, valuation of the property which was put to auction and also 30 days sale notice which was not even issued for the sale of the property as required under Rule 9 (1) of the Security Interest (Enforcement) Rules, 2002 (for brevity ‘Rules’) and also for delivery of possession etc.,

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3. However, against the order passed by the Tribunal, there is an alternative remedy available to the petitioner for filing appeal under Section

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17 (1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (for brevity ‘SARFAESI Act’) and the same shall be filed within 30 days from the date of order of Tribunal as prescribed under Section 18 of the SARFAESI Act. More over, time and again, the Supreme Court in its judgments deprecated the action of exercising jurisdiction of the High Courts under Article 226 of the Constitution of India in respect of SARFAESI proceedings when the statutes prescribed the powers to the appellate authority to deal with the matters. Therefore, we are not inclined to exercise our equitable jurisdiction inasmuch as there is an alternative remedy available to the petitioner for filing appeal before the appellate Tribunal.

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4. In the result, the Writ Petition is disposed of. The petitioner may avail the remedy by filing an appeal as provided under Section 17 of the SARFAESI Act within the statutory period. But in the meantime, the respondent-Bank is directed not to deliver possession of property to the 2nd respondent till the expiry of time for filing of the appeal.

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_____________________________ JUSTICE GHULAM MOHAMMED

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Dated:03-12-2010

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JUSTICE N.RAVI SHANKAR kvr

M/s. Janata Seva and Cold Storage Pvt. Ltd., v. State Bank of India

Case brief

What is this about?

What did the court decide?

M/s. Janata Seva and Cold Storage Pvt. Ltd., v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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