Disposed

M/s a. Krishna yadav Khowa Merchant and 2 Others v. M/s Shriram City Union Finance Limited

Telangana HC2 Feb 2022WP/5531/2022

Case brief

AI extract

What is this about?

The High Court maintained the symbolic possession notice issued by a Non-Banking Financial Company against petitioners, directing them to pay 1.5% of outstanding dues. The Court held that the Tribunal was not functional but the statutory remedy under Section 17 existed.

What did the court decide?

Redirected payment by petitioners of 1.5% of outstanding dues within 30 days. Symbolic Possession notice stayed pending such payment.

M/s a. Krishna yadav Khowa Merchant and 2 Others Vs… — Banking and Recovery | Telangana HC (2022)

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HIGH COURT FOR THE STATE^{OFTELANGANA AT HYDERABAD}

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(Special Original J urisdiction)

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WEDNESDAY, THE SECOND^{DAYOF FEBRUARY} TWO THOUSAND AND TWENTY^TWO

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PRESENT

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THE HONOURABLE^{SRI JUSTICEUJJALBHUYAN} ANO THE HONOURABLE^{SMTJUSTICEP. SREESUDHA}

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WRIT PETITIO^N NO:553t^{OF 2022}

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Between

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M/s A. Krishna^{Yadav Khowa l,4erchant, Representedby Adla--Krishna Yadav'} 23-A-1glA, Hari Bowli^{Shah Banda,Tagarikanaka,Hyderabad- 500032'}

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z. l-ori kii.r,nJ^{Yioav, Sio A Ravann5, Aged aboLit} 91^{vLa'",.occ Business'} - ResiOent of H.No.23-5-803, Nagula Chinta. Opp to Sudha Theatre' Shah Banda' Charminar, Hyderabad^{- 500065}

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g Smi. A.Madnivi, wlo n.frisnn" Yadav, Aged about 45^years, occ .Housewife' " n6iio"iii oi tiNb zg-s-aos, Nagulachinta, -opp to sudha Theatre' shah Banda, Charminar, Hyderabad^- 500065.

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...PET|T|ONERS

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AND

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I\ills shriram citv union^{Finance Limited, Representedby its Authorisedofiicer, # 221,} iil-'i.irii]ii ni,jfr noio. rr,,tviroore^{chennai I 600004. Registered officeat: # 123'} il&I5illlr"ii,["'r btiJet,^{dn6nnai - 600001. zonal office, 2nd Ftoor, FatepuriaTow^erq} ffi;5Ki; B;;k,^{nlnisr"jBusStop, Mahatma Gandhi Road' Secunderabad - 500003'}

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...RESPONOENT PetitionunderArticle226oftheConstitutionoflndiaprayingthatinthe circumstances^{stated in the affidavitfiled therewith,the Highcourt may be pleasedto} issue an appropriate^{writ order or direction more particularlyone in the nalure of writ} of Mandamus by^{declaringthe actionof the Respondentby issuingthe improper} Notice dated^{2711012021under 13(2) of sARFASIAct with other irrelevantand} unsecured^{properties in the schedule-1of the Noticeandfurther issuing Notice dated} 1)lo1l2o22 initiating^{proceedings undersection 13(4) of SARFASIAct read with Rule} EofthesaidrulesandtakentheSymbolicPossessionwithoutconsideringthe request for oTS by^{the petitioneras illegal void andnot in accordancewiththe} provisions of SARFASI Act 2002^{and the Rules madethereunderand also violation} of Articles 14 and 300A^{of the constitution of lndiawithoul following principlesof} nalural^justice.

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IANO:1O F 22

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petition under section 151 CPC praying that in the circumstances^{statedin the} affidavit filed^{in support of the petition,the High Court may be pleasedto Stay all the} proceedings in^pursuance of the^{Notice daled1olo1l2o22initiated under section} 13(a)ofSARFASIActreadwithRuleSoitheSaidrulesandtakentheSymbolic Possession and further^{not to proceedin any manner by the Respondent pending} disposal of the^{above Writ Petition}

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Counsel for the Petitioners:^{SRl. J. SURESH RAO}

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Counsel for the^{Respondent:NONE APPEARED}

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The Court made the following:^ORDER

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HONOURABLE^SRI JUSTICE^UJJALBHUYAN

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AND

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HONOURABI.E^{SMTJUSTICE P. SREE SUDHA}

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rifl'P'No'5531 of 2022

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Otder: 1t'et^{Uat'l,h -li} Jutiv^{Ulla/ l3hrvtttl}

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Heard Mr. J.^{Suresh Rao,leamed counsel forthe petitioners'}

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By filing this Petition^{underAnicle226 of the Constitutionof India'} petidoners^{have assailedthe legaliry and validityof thesl, nbolicpossession} nodce dated^{1O.OL2A22issued by the respondent under Section 13(a)of the} Securitisation^{and Reconstructionof Financial fusersand Enforcementof} Security^{InterestAct,2002 (for shon\he SARFAESIAct)'}

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It is^seenthat Petidoner^{No'1 is a proprietorshipfirm of which'} pedtioner No.2^{is the proprietor'Petitioner No' 1 had availedloan of} Rs.7O lal&s from^{the respondent,which is a Non-BankingFinancial} C-orporation CI'{BFq.^{To such loan,petilionerNo'Jstoodas guarantor' The} loan repal,rnenr^{wx to be madeby way of equatedmonthlyinstallments of} Rs.1,12,935.00^{staning fircm the month of February 2Ot8' Alleging thatthere} was default on^{the pan of the petitionersin loan repayrnent'respondent} initiated^{proceedingsunder the SARFAESI Act' In this connecdon'demand} notice under^{Sectioir13(2)of the SARFAESIAct was issuedon 27 '70'2027as} per which, an^{arnountof Rs.71,35,669'00 wasoutstanding' whichwasfollowed} by the impugned^{possessionnodce dated1o'oL2a22 issued underSection} 13(a) of the SARFAESI^Act.

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kamed counsel^{for the petitioners submits that there is wrong} calculation of the^{outstandingdues of the petitionersas Petitioners have paid} substantial amount^{even during the pandemicperiod'ThataPan' he has raised} cenain^{questions as to the securedassets highlighted in the impugnednotice'}

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Without entering into the contendous issues raised by the'petitionen, we are of the view that petitionen have got adequate and efficacious statutory remedy under Section 1Z of the SARFAESI Act.

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At this stage, leamed counsel for the petidonen submiaed that already petitionen have filed such an appl.ication before the Debts Recovery Tribunal-I, Hydenbad (for shon 'the Tribunal) on 17.01.2022, which has been numbered as S.A.No.8 of 2022.

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Since the petitioners have already availed their statutory remedy under Section 17 of the SARFAESI Act, we are of the view that it would be^jrst and proper if the petitionen pursue their remedy before the Tribunal. However, s.ince the Tribunal is presently not functional, we direct that petitionen shall pay 1.5o/o of tle outstanding dues to the respondent within a period of thirty dap from today.

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Subject to such paFnenL the impugned possession notice d*ed 10.01.2022, q a the petiionen, shall not be given effect to. However, if there is any default on the pan of the petitionen, respondent would be at libery to rale action for recovery as per law.

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\flrit Petition is, accordingly, disposed of. Related interim application b also disposed of.

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No costs.

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SD!P.PADMANABHA^REDDY ASSISTANT^REGIS,TRAR Ir,/ //TRUE COPY// ,/ SECTION OFFICER

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To, 1 The Authorised^{Officer, M/s Shriram City Union Fin€nc-eLimited' 221'} i"""irijiiiii riiin^{RoaO" Uyraporelcne,inii- ooooo+. Resistere_doffice at. 123.} iXl#"] r'rr'iiii," 5ti"it,^{6nb"# - ijoooot 2onat omce'2nd,Floor'Fatepuria} -Bus stop, r/'lahatma Gandhi Road' ?;;,:I5:d;;;;iil'baii<,^ninigunl Secunderabad^{- 500003.} 2. 6iit6-io siiL.^{suteshRao,Advocate[oPUC]}

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