Dismissed

Neeraj Singh Negi v. State of Uttarakhand

Uttarakhand HC15 Dec 2020WPMS/1075/2017

Case brief

AI extract

What is this about?

Held that the writ petition is maintainable in nature but dismissable on the ground that statutory remedy under Section 17 of the SARFAESI Act is available to the petitioner. The court observed that a cooperative bank can invoke the SARFAESI Act, following a Supreme Court Constitution Bench decision, and thus found no reason to interfere.

What did the court decide?

The writ petition is dismissed with liberty to approach the appropriate forum; no coercive measures to be taken for four weeks.

Neeraj Singh Negi Vs State of Uttarakhand — Service and Employment | Uttarakhand HC (2020)

¶1

WPMS No. 1075 of 2017 Hon’ble Manoj K. Tiwari, J.

¶2

Mr. T.A. Khan, Senior Advocate, assisted by Mr. Vinay Bhatt, Advocate for the petitioner.

¶3

Mr. Vinod Nautiyal, Deputy Advocate General for the State of Uttarakhand.

¶4

Mr. B.S. Khataiyat, Advocate, holding brief of Mr. Siddhartha Sah, Advocate for respondent nos. 3 & 4.

¶5

Heard learned counsel for the parties through video conferencing.

¶6

Petitioner took a loan from Almora Urban Cooperative Bank Ltd. Since he defaulted in re-payment of loan, therefore, proceedings were initiated against him under provisions of SARFAESI Act. According to learned counsel for the petitioner, only symbolic possession of petitioner’s assets has been taken; while, as per learned counsel for respondent nos. 3 & 4, physical possession of the assets has been taken.

¶7

By means of this writ petition, petitioner has sought following relief:

¶8

“I. To issue a writ, order or direction in the nature of certiorari quashing the Panchanama dated 16-01-2017, issued by the respondents no. 3 and 4 (Annexure No. 1 to the writ petition) and the notice dated 16-01-2017 and 17-012017, passed by the respondent no.3 and 4 (Annexure No. 4 and 5 to the writ petition) and the notice dated 25-042017, issued by the respondent no. 5 (Annexure No. 6 to the writ petition).”

¶9

The principal contention raised by the petitioner is that a Cooperative Bank cannot invoke provisions of SARFAESI Act, therefore, the proceedings under the said Act initiated against the petitioner are without jurisdiction.

¶10

This aspect has been dealt with by a Constitution Bench of Hon’ble Supreme Court in the matter of Pandurang Ganpati Chaugule Vs. Vishwasrao Patil Murgud Sahakari Bank Ltd. decided on 05.05.2020 and it has been held that provisions of SARFAESI Act are applicable also to the Cooperative Banks. Thus, the said contention of learned Senior Counsel for the petitioner is unacceptable.

¶11

Learned Senior Advocate for the petitioner has raised various other issues, which cannot be dealt with in a writ petition in view of statutory remedy available to the petitioner under Section 17 of SARFAESI Act. Thus, this Court does not find any reason to interfere in the matter.

¶12

Accordingly, the writ petition fails and is dismissed.

¶13

However, petitioner shall be at liberty to approach the appropriate forum under Section 17 of SARFAESI Act. This writ petition was filed in this Court on 04.05.2017 and, by an interim order, respondent-Bank was restrained from taking any coercive measures against the petitioner, provided he deposits an amount of ` 5,00,000/- with the Bank.

¶14

Learned Senior Advocate for the petitioner has informed that ` 5,00,000/- was deposited by the petitioner in terms of order of this Court.

¶15

In such view of the matter, petitioner shall be entitled to claim benefit of Section 14 of Limitation Act, as he was pursuing a remedy before the wrong forum.

¶16

For a period of four weeks from today, no coercive measures shall be taken against the petitioner.

¶17

(Manoj K. Tiwari, J.)

¶18

Arpan 15.12.2020

Neeraj Singh Negi v. State of Uttarakhand

Case brief

What is this about?

What did the court decide?

Neeraj Singh Negi v. State of Uttarakhand

Case brief

What is this about?

What did the court decide?

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