Calcutta High Court (Appellete Side)
Corporation Bank & Anr vs State Of West Bengal & Ors on 30 January, 2018
Author: Arindam Sinha
Bench: Arindam Sinha
1
30.01.2018
Court No.04
Item no.11
skc
W.P. 21145 (W) of 2017
(Assigned)
Corporation Bank & Anr.
Vs.
State of West Bengal & Ors.
Mr. Pankaj Kumar Mukherjee
Ms. Rekha Mishra
... for the petitioners/Bank
Mr. Santosh Kumar Pandey
... for the respondent nos. 3-6
Mr. Srijib Chakraborty ... for the State A bank seeks to move this Court under Article 226 of the Constitution of India. It is aggrieved by order dated 22nd May, 2017 of District Magistrate, Howrah in declining assistance to it under section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on the ground the security interest was created in agricultural land and hit section 31 of the said Act.
Mr. Mukherjee, learned Advocate appears on behalf of the Bank and relies on judgment dated 3rd August, 2015 made by a learned Single Judge of this Court in disposing of a Civil Revision application ( C.O. no. 1316 of 2014 Uluberia Coke Oven Plant & Ors. vs. Corporation Bank & Ors.) from which the following is set out below: 2
"Undoubtedly, the copies of Record of Rights in respect of the land appertaining to Khatian no.463 placed at Page 566-569 prima facie show the classification of the land as 'Sali' land i.e. agricultural land but at same time it recorded in the name of Uluberia Coke Oven Plant. Admittedly, the petitioner is engaged at all material time in the business of manufacturing cokes, an essential raw material for the purpose of manufacturing pig iron. The land in question though recorded as 'Sali' land being the paddy land but no paddy is grown in the said land on the contrary the user of the land is for the non-agricultural purpose.
It is the clenched position of law that presumption of accuracy of the entry in the Record of Rights does not create or extinguish the title but only raises a presumption which again is not conclusive and can be rebutted by evidence, (see 70 CWN 1066). On the basis of the user of the land prima facie, Record of Rights is created.
Basically the land in question was an agricultural land which has been converted by the petitioner for the purpose of manufacturing cokes and is used for business purpose. It is obvious that the financial institution has rendered loan facility to the petitioners on the basis of mortgage in respect of the land in question on being satisfied as to the user of the land. Since controversy was raised as to the user of the land, M. Chandan Pandey, Advocate was appointed a Special Officer by the Tribunal by Order dated 17.10.2013 to visit the factory premises of the petitioner situated at Uluberia and to submit report to ascertain as to whether the petitioner is carrying on agricultural operation on the land. The report as I have perused goes to show that the petitioner carries on his business for manufacturing coke and there is no agricultural activities inside the premises and in the surrounding."
He submits further, land though recorded as agricultural land but if used for non-agricultural purposes, it will be treated as non-agricultural land.
Mr. Chakraborty, learned Advocate appears on behalf of the State and submits, his client was not a party to the adjudication which resulted in the said judgment. In any event the question was whether the 3 procedure followed in the Debt Recovery Tribunal needed to be regulated in exercising superintending jurisdiction of this Court. He too relies on extracted portion of the said judgment to point out that the land records showed and still show the secured property as agricultural land. His further submission is that in any event there arises disputed questions of fact.
A question of law arises. It is a contention of the Bank, marketability of a property depends on its user. Mr. Mukherjee seeks adjournment to cite authorities.
List this writ petition on 13th February, 2018.
(Arindam Sinha, J.)