Indian Kanoon - Search engine for Indian Law

Gujarat High Court

Saraschandra Basantprasad Sharma & 2 vs Union Of India & 5 on 13 March, 2014

Author: Bhaskar Bhattacharya

Bench: Bhaskar Bhattacharya, J.B.Pardiwala

         C/SCA/4018/2014                                       ORDER




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

            SPECIAL CIVIL APPLICATION NO. 4018 of 2014

================================================================
     SARASCHANDRA BASANTPRASAD SHARMA & 2....Petitioner(s)
                           Versus
              UNION OF INDIA & 5....Respondent(s)
================================================================
Appearance:
MR MASOOM K SHAH, ADVOCATE for the Petitioner(s) No. 1 - 3
MS MOHINI K SHAH, ADVOCATE for the Petitioner(s) No. 1 - 3
================================================================

        CORAM: HONOURABLE THE CHIEF JUSTICE MR.
               BHASKAR BHATTACHARYA
               and
               HONOURABLE MR.JUSTICE J.B.PARDIWALA

                              Date : 13/03/2014



                               ORAL ORDER

(PER : HONOURABLE THE CHIEF JUSTICE MR. BHASKAR BHATTACHARYA) Issue Notice returnable after fortnight.

Since in this application, the writ petitioner has challenged the provisions contained in Section 2 (1) (c) (iva) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 as well as the provision contained in Section 2 (d) (vi) of the Recovery of Debt Due to Banks and Financial Institutions Act, 1993 as ultra vires the Constitution of India, let Notice be also issued upon the learned Attorney General of India.

After hearing Mr.Shah appearing on behalf of the petitioner and after taking into consideration the observations of the Supreme Court in the case of Greater Bombay Cooperative Bank Ltd. v. United Yarn Tex (P) Limited and Others reported in (2007) 6 SCC 236 (paragraph 89), we find that the petitioner has made out a strong prima facie case to have an interim order in terms of paragraph 10 (g) of the petition till the returnable date. This interim order, however, shall not stand in the way of the respondent bank from recovering the amount under the provisions of the Multi State Cooperative Societies Act, 2002.

We, accordingly, pass such order. Direct service today is permitted.

(BHASKAR BHATTACHARYA, C.J.) (J.B.PARDIWALA, J.) Mohandas Page 2 of 2