Suresh.K.V vs State Of Kerala on 16 January, 2026
3. Sri. V. Sethunath, the learned counsel appearing
for the petitioner, contends that the provisions of
Section 19 of the CARD Act confer unbridled and arbitrary
powers on the Primary Credit Societies, as the Societies
are empowered to sell properties that have been
mortgaged to secure the repayment of a loan without the
intervention of the Court and without any adjudication. It
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is submitted that Banks/Primary Credit Societies like the
6th respondent are therefore empowered to determine for
themselves the amount due from the borrower and also to
sell the property that has been mortgaged to recover such
amount, in some cases even without fixing a reserve price.
It is submitted that this Court, in Sosamma John v.
Thrissur Co-operative Agricultural and Rural
Development Bank and Others, 2018 (2) KHC 498,
has taken the view that the sale of property without fixing
a reserve price cannot be sustained in law. The learned
counsel for the petitioner contends that without resorting
to the procedure under Section 69 of the 1969 Act, a
Bank/Primary Credit Society exercising powers under
Section 19 of the CARD Act cannot proceed to sell
properties that are mortgaged.