Madras High Court
Coastal Overseas Trade Corporation vs Union Of India on 7 January, 2015
Bench: Satish K. Agnihotri, M. Venugopal
IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 07.01.2015 CORAM THE HON'BLE MR. JUSTICE SATISH K. AGNIHOTRI AND THE HON'BLE MR.JUSTICE M. VENUGOPAL W.P. Nos.31178 and 31179 of 2014 and M.P. Nos.1 & 2 of 2014 Coastal Overseas Trade Corporation represented by its Proprietor Mrs. Meena Jain Suit No.12, II Floor Dr. Rajiv Towers 231, Purasawakkam High Road Purasawakkam Chennai 600 007 Petitioner in both the writ petitions vs. 1 Union of India represented by the Secretary to Government Ministry of Finance Department of Economic Affairs (Banking Division) North Block, New Delhi 2 The Authorised Officer Andhra Bank Door No.231, Y Block VI Main Road Anna Nagar Chennai 600 040 3 The Principal Chief General Manager Reserve Bank of India Central Office Mumbai Respondents in both the WPs Prayer in W.P. No.31178 of 2014: Writ Petition filed under Article 226 of the Constitution of India seeking a writ of declaration declaring that Section 2(i)(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Clause 2.1 of Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to advances issued by the second respondent as ultra vires the Constitution of India, void ab initio, illegal and unconstitutional and consequently, forbear the second respondent bank from continuing the proceedings initiated under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as against the petitioner herein with reference to the subject property more fully set out in petition schedule. Schedule of the properties: Land and building of residential flat being flat No.F3, I Floor, ABC Suvidha Apartments, bearing Door No.7/3, Barracah Road, Kellys, Kilpauk, Chennai 600 010 having plinth area of 1321 sq. ft. together with 520 sq. ft. of undivided share of land in the total extent of land measuring 1 ground 1770 sq. ft. of land (as per patta/town survey extract 4224 i.e. 1 ground 1824 sq. ft.) comprised in Survey No.2932/2 (as per patta survey no.2932/28) at Purasawakkam Village, Perambur Puraswakkam Taluk, belongs to Smt. Meena Jain, bounden on the North by : Private road South by : House of S.S. Viswanathan East by : House of D. Ramiah Maistry West by : Barrach Road situated within the Registration District of Chennai-Central and Registration Sub District of Purasawakkam. Prayer in W.P. No.31179 of 2014: Writ Petition filed under Article 226 of the Constitution of India seeking a writ of declaration declaring that Section 2(i)(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and Clause 2.1 of Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to advances issued by the second respondent as ultra vires the Constitution of India, void ab initio, illegal and unconstitutional and consequently, forbear the second respodnent bank from continuing the proceedings initiated under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as against the petitioner herein with reference to the subject property more fully set out in petition schedule. Schedule of the properties: Land and residential house constructed in 2193 sft of land area with constructed area pf 3932 sft in ground, 1st and 2nd floors situated at Sipaniyon la Mohalia, Purani Lane, Gangashankar, Bikaner (Rajasthan) belonging to Mr. Rajendra Kumar Lunia as a Karta of his own HUF. North by : House of Jatanlal Baid South by : House of Dhanraji Daga East by : Road West by : Road situated with the Registration District of Bikaner Rajasthan. For petitioner in both the WPs Mr. S.M. Deenadayalan For RR 1 & 2 in both the WPs Mr. Su. Srinivasan Additional Solicitor General For R2 in both the WPs Mr. P. Veeraraghavan - - - - COMMON ORDER
The question involved in these writ petitions, viz., the validity and constitutionality of Section 2(1)(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, came up for consideration in a batch of writ petitions. A Division Bench of this Court, in Deccan Chronicles Holdings Ltd. and others vs. Union of India, represented by its Joint Secretary, Ministry of Finance, Department of Economic Affairs, New Delhi- 110 011 and others1, upheld the constitutional validity of the said provision and dismissed the said batch of writ petitions.
2. In view of the above, these writ petitions are also dismissed. No costs. Connected Miscellaneous Petitions are closed.
(S.K.A.J.) (M.V.J.) 07.01.2015 Index : Yes/No Internet : Yes/No cad To 1 The Secretary to Government Ministry of Finance
Department of Economic Affairs (Banking Division) North Block New Delhi 2 The Authorised Officer Andhra Bank Door No.231, Y Block VI Main Road Anna Nagar Chennai 600 040 3 The Principal Chief General Manager Reserve Bank of India Central Office Mumbai SATISH K. AGNIHOTRI, J.
and M. VENUGOPAL, J.
cad Common order in W.P. Nos.31178 and 31179 of 2014 07.01.2015