Punjab-Haryana High Court
Harjit Singh vs Punjab National Bank And Anr on 28 August, 2023
Author: Lisa Gill
Bench: Lisa Gill
CWP-14449-2023 (O&M) 2023:PHHC:112798-DB 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH (132) CWP-14449-2023 (O&M) Date of Decision: 28.08.2023 Harjit Singh ...Petitioner Versus Punjab National Bank and another ...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. 38 2 2 2 LISA GILL, J (ORAL)
1. Prayer in this writ petition is for directing respondent-Bank not to proceed qua secured asset of petitioner/guarantor i.e. his sole residential property without selling and proceeding against secured asset/collateral security submitted by respondent No.2 i.e. the borrower.
2. Petitioner claims to be the guarantor for loan facility availed of by respondent No.2. There was default on the part of respondent No.2 due to which proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act') were initiated by respondent-Bank. Notice dated 01.07.2016 under Section 13 (4) of the SARFAESI Act was also issued with e-auction sale notice dated 18.05.2023 (Annexure P-1) being issued as well. However, said auction failed, there being no bidders.
3. Learned counsel for the petitioner submits that no action should be taken qua petitioner before necessary action is taken qua property of the borrower. However, we do not find any ground whatsoever to interfere in this writ petition at this stage, keeping in view the definition of 'borrower' under Section 2 (1) (f) of the SARFAESI Act, which reads as under :-
f) 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 MANPREET SINGH or financial institution or who has given any guarantee or authenticty ofthis created any mortgage or pledge as security for the financial order/judgment CWP-14449-2023 (O&M) 2023:PHHC:112798-DB 2 assistance granted by any bank or financial institution and includes a person who, or a pooled investment vehicle which, becomes borrower of aasset 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. Furthermore, petitioner has an efficacious alternate remedy for redressal of grievance as raised in this writ petition qua the proceedings initiated under the SARFAESI Act, 2002. Gainful reference in this regard can be made to judgments of Hon'ble the Supreme Court in Union Bank of India vs. Satyawati Tandon and others, 2010 (8) SCC 110, Varimadgugu Obi Reddy vs. B. Sreenivasulu and others, 2023 (1) R.C.R. (Civil) 34, M/s South Indian Bank Ltd. and others vs. Naveen Mathew Philip and others, 2023 (2) R.C.R. (Civil) 771. No exceptional or extra-ordinary circumstance which calls for interference by this Court in exercise of jurisdiction under Article 226 of the Constitution of India, has been pointed out by learned counsel for the petitioner.
5. Keeping in view the facts and circumstances as above, writ petition is dismissed with liberty to petitioner to avail the statutory remedy/remedies available to him in respect to proceedings initiated under the SARFAESI Act. It is clarified that there is no expression of opinion on the merits of the matter.
6. Pending miscellaneous applications, if any, stand disposed of accordingly.
(LISA GILL) JUDGE (RITU TAGORE) JUDGE August 28, 2023 Manpreet Whether speaking/reasoned Yes/No Whether reportable : Yes/No MANPREET SINGH 2023.09.05 17:15 I attest to the accuracy and authenticity of this order/judgment