Poly Ram vs Punjab National Bank And Anr on 22 August, 2023

[Cites 6, Cited by 0]

Punjab-Haryana High Court

Poly Ram vs Punjab National Bank And Anr on 22 August, 2023

Bench: Lisa Gill

CWP No. 15422 of 2023 (O&M) 1
2023:PHHC:108835-DB

IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
CWP No. 15422 of 2023 (O&M)
Date of Decision: 22.08.2023
Poly Ram 42424242 20202 0 00 eee Petitioner

Versus

The Punjab National Bank and another

sevens Respondents

CORAM:- HON'BLE MRS.JUSTICE LISA GILL

HON'BLE MRS. JUSTICE RITU TAGORE
Present: Mr. Sunil Kumar Dogra, Advocate

for Mr. Pardhuman Garg, Advocate

for the petitioner.

36 2s 3k ie 3

LISA GILL, J(Oral).

1. Sole prayer raised in this writ petition is that the respondent-

Bank should be directed not to proceed qua residential property of the petitioner, without first proceeding qua the collateral security given by respondent no.2.

2. Petitioner is admittedly a guarantor gua the loan account of respondent no.2.

3. Due to financial indiscipline on the part of respondent no.2, its account was declared 'Non Performing Asset' (NPA), due to which proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 ( for short 'SARFAESI Act') were initiated by the respondent-Bank. Notice under Section 13(4) of the SARFAESI Act was issued on 01.07.2016. It is submitted that e-auction notice dated 18.05.2023, had been served upon the petitioner, however the auction which was to be held on 08.06.2023 failed. It is vehemently argued that the petitioner is the guarantor, therefore his property should not be put sansay xHsQ auction before taking action qua the property of the borrower. We find no 2023.08.29 09:17 I attest to the accuracy and integrity of this document CWP No. 15422 of 2023 (O&M) 2 merit in this argument keeping in view the definition of borrower as per Section 2 (1) (f) of the SARFAESI Act, which reads as under:-

Section 2(1) () : "borrower" means any person who, or a pooled investment vehicle as defined in clause (da) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) which, has been granted financial assistance by any bank or financial institution or who has given any guarantee or created any mortgage or pledge as security for the financial assistance granted by any bank or financial institution and includes a person who, or a pooled investment vehicle which, becomes borrower of a asset reconstruction company consequent upon acquisition by it of any rights or interest of any bank or financial institution in relation to such financial assistance or who has raised funds through issue of debt securities;

4. Keeping in view the facts and circumstances as above, we find no ground whatsoever to interfere in this writ petition in exercise of jurisdiction under Article 226 of the Constitution of India. Petitioner admittedly has an efficacious alternate remedy for challenging the proceeding under the SARFAES]I Acct initiated by the respondent-Bank.

5. Writ petition is accordingly dismissed with liberty to the petitioner to avail the remedy available to him in accordance with law.

(LISA GILL ) JUDGE (RITU TAGORE) August 224 , 2023. JUDGE s.khan Whether speaking/reasoned : Yes/No. Whether reportable : Yes/No. SANJAY KHAN 2023.08.29 09:17 I attest to the accuracy and integrity of this document

Unlock Advanced Research with PRISMAI

Punjab-Haryana High Court