Madras High Court
Srinivasan Charitable And Educational ... vs The Oriental Bank Of Commerce on 2 July, 2015
Bench: S.Manikumar, C.T.Selvam
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 02.07.2015 CORAM THE HONOURABLE MR.JUSTICE S.MANIKUMAR and THE HONOURABLE MR. JUSTICE C.T.SELVAM W.P.(MD)No.3444 of 2016 Srinivasan Charitable and Educational Trust, rep. By its Trustee 274 C, Thuraiyur Road, Perambalur-621 212. ... Petitioner Vs. The Oriental Bank of Commerce, (A Government of India undertaking) rep. By its Chief Manager/Authorized Officer, No.60, Shree Krishna Arcade, Thennur High Road, Thillainagar, Trichy-18. ... Respondent PRAYER: The Writ Petition is filed under Article 226 of the Constitution of India, to issue a WRIT OF CERTIORARIFIED MANDAMUS calling for the records of the respondent in its Recall notice dated 6.1.2016 issued under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 quash the same and consequently forbear the Respondent from initiating any action contrary to Section 13(9) of the said Act. !For Petitioner : Mr.Muthukumarasamy, Senior Counsel for Mr.A.Jenasenan For Respondent : :ORDER
(Order of this Court was made by S.MANIKUMAR, J.) The Recall notice dated 06.01.2016, issued under Section 13(2) of the SARFAESI Act, 2002, is sought to be quashed by a writ of certiorarified mandamus. The petitioner has also sought for a direction to forbear the respondent/ Oriental Bank of Commerce, Thennur High Road, Thillainagar, Trichy-18, from initiating any action contrary to section 13(9) of the said Act.
2. Inviting the attention of the court to Section 13(9) of the SARFAESI Act, 2002, Mr.Muthukumarasamy, learned Senior Counsel for the petitioner submitted that the impugned recall notice is without jurisdiction. Therefore, this Court can entertain everybody.
3. Section 13(3-A) of the SARFAESI Act, 2002, reads as follows:
?13. Enforcement of Security Interest:-
13 [3-A] If, on receipt of the notice under sub-section (2), the borrower makes any representation or raises any objection, the secured creditor shall consider shall representation or objection and if the secured creditor comes to the conclusion that such representation or objection is not acceptable or tenable, he shall communicate [within fifteen days] of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower.?
4. Material on record discloses that responding to the recall notice issued under Section 13(2) of the SARFAESI Act, 2002, admittedly, the petitioner has raised his objections on 04.02.2016 contending inter alia that the impugned recall notice is against Section 13(9) of SARFAESI Act, 2002 and that the petitioner also requested the respondent to withdraw the said notice.
5. Though Mr.Muthukumarasamy, learned Senior Counsel for the petitioner contended that inasmuch as the question of jurisdiction is involved, the authority who had issued the recall notice cannot sit in over the same and therefore, prayed to entertain the writ petition. This Court is not inclined to do so, for the reason that Section 13 (3-A) of the SARFAESI Act mandates the authority to consider the representation or objection and to communicate the reasons for non-acceptance of the representation or objection to the borrower. Since the objection has been filed on 04.02.2016, 15 days time has not expired. Even otherwise, if the respondent proceeds under Section 13(4) of the SARFAESI Act, the remedy available to the petitioner is under Section 17 of the Act. In such view of the matter, this court is not inclined to entertain the writ petition. Hence, this writ petition is dismissed. The respondent is directed to consider the objections/representation of the petitioner dated 04.02.2016. Consequently connected W.M.P.(MD).No.3050 of 2016 is dismissed. No costs.
To The Chief Manager/Authorized Officer, Oriental Bank of Commerce, (A Government of India undertaking) No.60, Shree Krishna Arcade, Thennur High Road, Thillainagar,Trichy-18. .