Madras High Court
M/S.Den Zippers X Corp vs The Authorized Officer on 21 April, 2015
Bench: S.Manikumar, G.Chockalingam
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 21.04.2015 CORAM THE HONOURABLE MR.JUSTICE S.MANIKUMAR and THE HONOURABLE MR. JUSTICE G.CHOCKALINGAM W.P.(MD)No.5995 of 2015 and M.P.(MD)Nos.1&2 of 2015 M/s.Den Zippers X Corp, Proprietor Mr.A.Chakkaravarthy, S/o.Andiappan No.2/221, Chellayeepuram, Veerapandy Village (Via) Thirumalpuram Post, Madurai ? 625 014 ... Petitioner Vs. 1.The Authorized Officer, Regional Office, Indian Overseas Bank, Eighty Feet Road, Arignar Anna Nagar, Madurai. 2.The Branch Manager, Indian Overseas Bank, South Masi Street, Madurai. 3.The Chief Executive Officer, CGTMSE, 1002, 1003, Naman Centre 10th Floor, Plot No.C-31, 'G' Block, Bandha Karla Complex, Bandra East, Mumbai ? 400 051. ... Respondents PRAYER The Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, to call for the records pertaining to the 1st respondent's notice dated 15.07.2014 u/s.13 fo the SARFAESI Act, and quash the same and consequently direct against the respondents 1 and 2 to return the original documents deposited by him as per the registered Memorandum of Deposit of Title Deeds, dated 26.07.2013, which is registered as Doc.No.3927/2013. !For Petitioner : Ms.N.Juliet Latha :ORDER
(Order of this Court was made by S.MANIKUMAR, J.) Impugned Notice, dated 15.07.2014, issued to the petitioner, M/s.Den Zippers X Corp, Proprietor Mr.A.Chakkaravarthy, S/o.Andiappan, No.2/221, Chellayeepuram, Veerapandy Village (Via), Thirumalpuram Post, Madurai District, is put to challenge in this Writ Petition.
2. Contending interalia that the Chief Executive Officer, Credit Guarantee Fund Trust for Micro and Small Enterprises, Mumbai, has coercively obtained a registered supplemental Memorandum of Deposit of Title Deeds, on 26.07.2013, combined memorandum, dated 26.07.2013, from the petitioner, in favour of the Branch Manager, Indian Overseas Bank, South Masi Street, Madurai, the respondent No.2, in respect of certain properties, for the loan availed by the petitioner, writ petition has been filed. Labour problem and hike in the value of raw materials, were also pleaded, as grounds for non- payment of loan amount. Averments have been made that taking advantage of the Memorandum of Deposit of title Deeds, alleged to have coercively obtained, impugned notice, dated 15.07.2014, under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, has been issued.
3. Perusal of the notice, dated 15.07.2014, disclose that the petitioner has availed credit facilities from the Indian Overseas Bank, South Masi Street Branch, Madurai. Five items of properties have been mortgaged. For non-payment of the principal amount and interest, as per the term, loan account has been classified as non-performing asset, on 01.01.2014, in accordance with the Reserve Bank of India directives and guidelines. As there was a failure to meet the liabilities in respect of the credit facilities, Indian Overseas Bank, Regional Office, Madurai, has issued a notice under Section 13(2) of SARFAESI Act, 2002, calling upon the petitioner, to pay in full and discharge of its liabilities, to the Bank aggregating Rs.1,12,99,186/-, with further interest at 12.75% per annum with monthly rests for cash credit with further interest at 12.75% with monthly rests for Term Loan, with further interest at 15.00% with monthly rests for Term Loan, with further interest at16.00% with monthly rests for Term Loan.
4. In the notice dated 15.07.2014, issued under Section 13(2) of SARFAESI Act, 2002, attention of the petitioner has also been invited to sub section (2) of Section 13, in terms of which, the petitioner has been restrained from transferring any of the secured assets. The petitioner has availed the loans, after deposit of title deeds. For non-payment of the liabilities, loan accounts have been classified as non-performing asset, from 01.01.2014 and thereafter, notice under sub section (2) of Section 13 of SARFAESI Act, dated 17.07.2014, has been issued, directing the petitioner to pay the outstanding amount, as stated supra.
5. First of all, the writ petition filed under Article 226 of the Constitution of India, challenging the notice under Section 13(2) of SARFAESI Act, 2002, for payment of liabilities, is not maintainable. If at all, the petitioner has a case on the bassi of the averments now made, the documents were deposited under coercive, the same cannot be adjudicated in Writ Petition, under Article 226 of the Constitution of India, as the SARFAESI Act, provided for an alternative remedy and facts cannot be adjudged in this writ petition.
6. For the above said reasons, we are of the view that the relief sought for, cannot be granted. Hence, this Writ Petition is dismissed. No costs. Consequently, connected miscellaneous petitions are also dismissed.
(S.M.K, J.) (G.C, J.) 21.04.2015 Index : Yes / No Internet : Yes / no mpk To
1.The Authorized Officer, Regional Office, Indian Overseas Bank, Eighty Feet Road, Arignar Anna Nagar, Madurai.
2.The Branch Manager, Indian Overseas Bank, South Masi Street, Madurai.
3.The Chief Executive Officer, CGTMSE, 1002, 1003, Naman Centre 10th Floor, Plot No.C-31, 'G' Block, Bandha Karla Complex, Bandra East, Mumbai ? 400 051.
S.MANIKUMAR, J.
and G.CHOCKALINGAM, J.
mpk W.P.(MD)No.5995 of 2015 21.04.2015