Karnataka High Court
Neelkanth B Neerolli vs The Asst. General Manager And ... on 20 June, 2024
-1-
NC: 2024:KHC-D:8229
WP No. 102510 of 2024
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 20TH DAY OF JUNE, 2024
BEFORE
THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO. 102510 OF 2024 (GM-RES)
BETWEEN:
1. NEELKANTH B. NEEROLLI,
AGE: 44 YEARS, OCC: BUSINESS,
AT/PO. KADARAVALLI-591153,
TQ: KITTUR, DIST: BELAGAVI.
2. DEVAKI B. NEEROLLI,
AGE: 70 YEARS, OCC: HOUSEHOLD,
AT/PO. KADARAVALLI-591153,
TQ: KITTUR, DIST: BELAGAVI.
3. KHANDU B. NEEROLLI,
AGE: 40 YEARS, OCC: BUSINESS,
AT/PO. KADARAVALLI-591153,
TQ: KITTUR, DIST: BELAGAVI.
4. RAMDAS B. NEEROLLI,
AGE: 42 YEARS, OCC: BUSINESS,
AT/PO. KADARAVALLI-591153,
TQ: KITTUR, DIST: BELAGAVI.
...PETITIONERS
(BY SRI. VIJAYKUMAR B. HORATTI, ADVOCATE)
ASHPAK
KASHIMSA
AND:
MALAGALADINNI
1. THE ASST. GENERAL MANAGER
Location: HIGH
COURT OF & AUTHORISED OFFICER, STATE BANK OF INDIA,
KARNATAKA,
DHARWAD INDUSTRIAL ESTATE (BELAGAVI),
BENCH
BRANCH CODE (2217), UDYAMBAG, BELAGAVI-590008.
2. THE AUTHORISED OFFICER,
STATE BANK OF INDIA,
STRESSED ASSET RECOVERY BRANCH,
AVANI EMPORIO, J.C.NAGAR, HUBBALLI-580020.
...RESPONDENTS
(BY SRI. V.P. VADAVI, ADV. FOR R1 & R2)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT IN THE
NATURE OF CERTIORARI BY QUASHING THE IMPUGNED NOTICE
ISSUED BY RESPONDENT NO.2 DATE 19/4/2024 PRODUCED VIDE
-2-
NC: 2024:KHC-D:8229
WP No. 102510 of 2024
ANNEXURE-G; TO ISSUE WRIT IN THE NATURE OF MANDAMUS
DIRECTING RESPONDENT NO.1 TO CONSIDER THE REQUISITION
DATE 20/12/2023 PRODUCED VIDE ANNEXURE- F.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
Petitioner is seeking writ of certiorari to quash the notice issued under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act' for short) on the ground that his representation to the show-cause notice issued under Section 13(2) of the SARFAESI Act is not considered in terms of Section 13(3A) of the SARFAESI Act.
2. Heard the learned counsel for the petitioners, learned counsel for the respondent-bank and perused the material on record.
3. Respondent-bank has initiated recovery proceedings by having recourse to Section 13 of the SARFAESI Act. Petitioners on receipt of notice under Section 13(2) of the SARFAESI Act have submitted a -3- NC: 2024:KHC-D:8229 WP No. 102510 of 2024 representation under Section 13(3A) of the SARFAESI Act. The petitioners' grievance is that respondent-bank has taken recourse to Section 13(4) of the SARFAESI Act without deciding their representation under Section 13(3A) of the SARFAESI Act.
4. I do find some force in the submission made by the learned counsel for the petitioners. Section 13(3A) of the SARFAESI Act enables a defaulter to submit a representation. Section 13(3A) of the SARFAESI Act also contemplates that secured creditor has to examine the representation and pass appropriate order and communicate within 15 days on receipt of such representation. This representation is dated 20.12.2023. There is complete inaction on the part of the respondent- bank in not deciding the representation as contemplated under Section 13(3A) of the SARFAESI Act.
5. Learned counsel appearing for the respondent- bank has also brought to the notice of this court that recourse available to the secured creditor under Section -4- NC: 2024:KHC-D:8229 WP No. 102510 of 2024 13(4) of the SARFAESI Act is accomplished and possession is taken. Be that as it may, before the respondent-bank takes precipitative action to recover the dues by selling the secured assets of the petitioners, there is mandatory duty cast on the respondent-bank to decide the representation submitted by the petitioner under Section 13(3A) of the SARFAESI Act.
6. For the forgoing reasons, this court passes the following:
ORDER
i) The writ petition is allowed in part.
ii) The respondent-bank is hereby directed to consider the representation as provided under Section 13(3A) of the SARFAESI Act.
Till then, precipitative action under Section 13(4) of the SARFAESI Act shall be deferred.
Sd/-
JUDGE MBS Ct-mck List No.: 1 Sl No.: 13