Disposed

Rajesh. J v. The Chief Manager /Authorized Officer

Telangana HC5 Oct 2021WP/24744/2021

Case brief

AI extract

What is this about?

The petition challenged a SARFAESI notice and requested loan restructuring under RBI directions. The High Court disposed of the petition by directing the Respondent-Bank to follow the SARFAESI Act and provide an opportunity before passing final orders.

What did the court decide?

Directed the Respondent-Bank to follow the SARFAESI Act and give an opportunity to the petitioner before passing any final orders.

Rajesh. J Vs The Chief Manager… — Contract and Commercial Disputes | Telangana HC (2021)

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HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

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(Special Original Jurisdiction)

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TUESDAY, THE FIFTH DAY OF OCTOtsER TWO THOUSAND AND TWENTY ONE

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PRESENT

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THE HON'BLE SRI JUSTICE ABHINAND KUMAR SHAVILI

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WRIT PETITION NO. 24744 0F 2021

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Between:

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Rajesh. J, S/o. J.Mohan Rao, Aged -^{50 Years, Occ- Business' Ryo. F-11,} H.No.10-2-1 , RR Niwas, East Marredpally, Secunderabad-500026

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,..PETITIONER

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AND

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The Chief Manager/Authorized Officer,^{M/s Bank of lndia' Plot No.28, Laxmi} Enclave Lane, Opip- Furniture World,^{Vasavi Nagar, Secunderabad-sO0O15.}

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...RESPONDENTS

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Petition under Article 226 of the^{Constitution of lndia prayingthat in the} circumstances stated in the affidavit^{filed therewith,the High court may be pleased} to issue an appropriate Writ, Order^{or a Direction, moreparticularly one in the nature} of writ of Mandamus, declaring^{the action of the Respondent in issuingthe demand} notice under Section 13(2) of the^{SARFAESIAct 2002 with Proceedings} No.VSV/SARF AESll2O21-22103 dated^{06.04.2021to the petitioner and thereafternot} considered the request for^{restructuringof the loan and reclassification of the} account under Reply dated^07.05.2021 ,^{and issuingthe impugnednotice Ref. No.} vsv/NPA/2021^-22-169 dated.^{',l 8.09.2021 Under Rightof hypothecatee under lndian} Contract Act as arbitrary,^{illegal, violative of the directionsof ReserveBankof lndia} under circular No. RBI/2019-20/160,^{DOR No.BP.BC.34121.04.04812019-20, dated} 11.02.2020, circular No.^{No.RBl/2020-21117,DOR No.BP.BCl4121.04.04812020-21,} dated 06.08.2020, circular^{No.RBl/2021-22117,DOR.STR.REC.21121.04.04812021-} 22,dated07.O4.2O21andCircularNo.RBll2O21-22117,DOR'STRREC' 21121 .04.04812021-22, dated^{04.06.2021 and the ratio laid down by Hon'ble} Supreme Court of lndia^{in Small ScaleManufacturersAssociation Vs' Unionof lndia} and others, violative^{of fundamental rules guaranteed to the petitioner under Article} 14 and 19(1Xg) of the constitution^{of lndia and direct the Respondentto provide the} restructuring of the loan^{facilities and all the facilitiesmade available due to Covid-19}

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pandemic as provided under the aforesaid circular No.RBl/2019-20/160, DoR No. BP. 8C.3412 1 .04.048/2019-20 dated 1 1 .02.2o2o, circutar No. No. RBI/20 20-21 t 11, DoR. No.BP.Bcl4l21 .o4.o4Bt2o20-21 , dated 06.08.2020, circutar No.RBt/202122117, ooR. srR.REc.21l21.04.048t2021-22, dated 07.04.2021 and circurar No.RBl/2021-22117, DoR.srR.RE3.21t21 .o4.o4\t2o21-22, dated 04.06.2021 and also reclassify the account as a standard account, duly setting aside the impugned notice Ref. No. VSV/NPA/2021-22-169 dated. 18.09.202't in the interest of justice.

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lA NO: 1 oF 2021

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Petition under. section 1sl cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to suspend the operation of the notice issued vide Ref. No. vsv/NpA/2o2i -22-169 dated. 18.09.2021 under Righl of hypoticatee under lndian contract Act to the petitioner, pending disposal of the writ petition, in the interest of justice.

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Counsel for the Petitioner: SRI S. LAKSHMI KANTH

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Counsel for the Respondents: SMT. T. VIOYA RANI, S.C. FOR BOI

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The Court made the following: ORDER

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HON'BLE SRI JUS'f I(]E ABHINAND KUMAR SHAYILI

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V.P.No.24744 OF 2021

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9_BDE&

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When the matter is taken up for hearing, learned counsel appearing lor the petitioner contended that without following the Sccuritization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002,, (for short^,the Act'), the respondent has issued a notice under Hypothecation Agreement on 18.09.2021.

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Learned Standing Counsel appearing for the respondentBank contended that before passing xry final orders, the respondent-Bank would follow the Act and give an opportunity to the petitioner.

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Having considered the rival submissions made by the learned counsei on either side, this Court is of the view that this Writ Pctition can be disposcd of directing rhe respondent-Bank to follou' the Act before passing any final orders against the petitioner.

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Accordinglv, the Writ Petition is disposed of. No costs.

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Miscellaneous petitions, if any, pendi shall stand closed.

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SD/.K.SAILESHI ASSISTANT REGISTRAR //rRUE COPY/1 \ ep, SECTION OFFICER

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To, '1. The Chief Manager/Authorized Officer, M/s Bank of lndia, Plot No.28,-Laxmi Enclave Lane, Opp- Furniture^{World, Vasavi Nagarr Secunderabad-S000'15'} 2. One CC to Sri S.'Lakshmi^{Kanth,Advocate} [OPUC] 3. One CC to Sri T. Vidya Rani,^{S.C. for BOI} [OPUC] 4. Two CD Copies. 5. One Spare Copy.

HIGH COURT

DATED:05110121021

ORDER

WP.No.24744 at 2021

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