Patna High Court - Orders
Rajiv Ranjan Verma vs The Punjab National Bank & Ors. on 30 July, 2015
Author: Kishore Kumar Mandal
Bench: Kishore Kumar Mandal
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.7056 of 2015
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1. Rajiv Ranjan Verma son of Sri Gunjeshwar Kumar Verma Resident of
village Dahiyawan (Bramhan Toli), P.S. Town, District Chapra Proprietor
M/S Ranjan Brothers Sharan Market Complex P.S. Town District Chapra.
.... .... Petitioner
Versus
1. The Punjab National Bank through the Chief Managing Director Head
Office 7 Vikhaji Kama Palce, New Delhi 110607.
2. The Regional Manager, Punjab National Bank Pankaj Market, Saraiya
Ganj Muzaffarpur.
3. The Chief Branch Manager, Punjab National Bank, Hathua Market,
Chapra.
4. The Assistant General Manager (Authorized Officer) Punjab National
Bank Branch Officer Chapra.
.... .... Respondents
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Appearance :
For the Petitioner : Mr. Rajeeva Roy, & Mr. Gyan Prakash, Advocates.
For the Respondents : Mr. Mahesh Narain Parbat, Sr. Advocate.
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CORAM: HONOURABLE MR. JUSTICE KISHORE KUMAR
MANDAL
ORAL ORDER
5 30-07-2015The petitioner is the loanee of the respondent -Punjab National bank ( for short 'the Bank'). He was served with a notice dated 29.12.2014 and 07.04.2015 issued under Section 13(2) and 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act') calling upon him to pay certain amounts with interest . Other ancillary relief(s) have also been prayed.
Heard Mr. Rajeeva Roy learned counsel for the petitioner and Mr. M.N. Parbat learned Senior Counsel for the respondent- Bank.
Patna High Court CWJC No.7056 of 2015 (5) dt.30-07-20152/5
On request made by the petitioner the respondent Bank extended him the privilege of cash credit and debit on certain amounts thereagainst. Subsequently, a proceeding was also filed before the District respondent- Certificate Officer-Chapra for recovery of a sum of Rs. 3,74,875/- wherein notice was issued to the petitioner. The petitioner did not pursue the matter and as such warrant was also issued.
The contention of the petitioner is that pursuant to the notice issued under Section 13(2) of the SARFAESI Act , the petitioner file his reply/representation on 24.1.2015 through his advocate followed by another notice issued on 16.2.2015. The contention of the petitioner is that these notices, in view of the subject matter thereof, ought to have been treated as his representation filed under section 13(3-A) of the SARFAESI Act. The grievance raised in this writ application is that those representations/objections was/were never taken into consideration and no communication was ever made which is obligatory on the part of the authorized Officer under Section 13(3-A) of the SARFAESI Act read with Rule 3-A of the Rules framed thereunder. In support of his contention, he has relied on (2015)4 SCC 770 Keshavlal Khemchand and sons Private Limited and others vs. Union of India and others. Patna High Court CWJC No.7056 of 2015 (5) dt.30-07-2015 3/5
Per contra, Mr. Parbat has submitted that on the ground which has been urged on behalf of the petitioner the notice under Section 13(2) issued by the respondent authorized Officer cannot be said to be arbitrary. The notice issued by the advocate of the petitioner (Annexures 4 and 5) cannot be said to be an objection/representation, the same has not been filed by him. To counter the aforesaid submission, Mr. Roy, has drawn attention of the Court to Annexure-5 wherein it has specifically been stated that the notice/representation was filed under Section 13(3-A) of the SARFAESI Act. The contents of the notice, it has been urged would also show that the same was a representation of the petitioner which the respondent designated authority of the Bank was required to consider.
Section 13(3-A) of the SARFAESI Act reads as under:-
(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 such 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 one week of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower:"
It, thus, appears that the valuable right accrues in Patna High Court CWJC No.7056 of 2015 (5) dt.30-07-2015 4/5 favour of the debtor/loanee to file such representation /objection which the respondent secured creditor is obliged to consider and record reasons for non acceptance thereof. In Keshavlal Khemchand (supra) the Hon'ble Apex Court dealing with the aforesaid fasciculus of provisions contained in Section 13(3-A) of the SARFAESI Act, has obligated the secured creditors to examine representation/objection, if any , made by the borrower on the receipt of notice under Section 13(2) of the SARFAESI Act and communicate the reasons to the borrower. The legal position appearing from the provisions of the SARFAESI Act as also the law enunciated by the Apex Court has not been complied with by the respondents while issuing notice under Section 13(4) of the SARFAESI Act.
Consequently, the notice issued under Section 13(4) of he SARFAESI Act by the respondent authority shall not be given effect to unless the respondents consider the representation/objection of the petitioner and communicate the reasons for non acceptance thereof. The respondent Bank shall, however, be entitled to issue a fresh notice after complying with the provisions under Section 13(4) of the SARFAESI Act after considering the representation/objection, copy whereof has been enclosed as Annexure-5 in compliance of the provisions of the Patna High Court CWJC No.7056 of 2015 (5) dt.30-07-2015 5/5 Act. The respondent shall refrain from taking any coercive action against the petitioner until a fresh notice is issued under Section 13(4) of the SARFAESI Act.
The writ application is disposed of.
(Kishore Kumar Mandal, J) Shyam/-
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