T.R.Vijayakumar v. Board Of Directors Of State Bank Of India

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 29.06.2026 CORAM :

THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN & W.M.P.Nos.1737 & 1738 of 2024 T.R.Vijayakumar Managing Director of CBC Fashions (Asia) Pvt. Ltd. Since removed by virtue of the order dated 25.09.2023 of the NCLT, Chennai Residing at S.F.No.373-Sahajapuram Extension 2nd Street, Nandhus Illam, K.Chettipalayam, Dharapuram Road, Tiruppur, TN-641 604.

Petitioner(s) Vs

1. Board of Directors of State Bank of India Rep. by its Managing Director & CEO State Bank Bhawan, M.C. Road Nariman Point, Mumbai Maharashtra-400 021.

2. Chairperson Committees for Stressed Micro, Small and Medium Enterprises State Bank Of India Rep. By Its Managing Director & CEO State Bank Bhawan, M.C. Road Nariman Point, Mumbai Maharashtra-400 021.

3. The Authorized Officer State Bank of India, Stressed Assets Management Branch 112, Raja Palaza Avinashi Road, Coimbatore-641 037.

4. The Authorized Officer State Bank of India Special Commercial Branch Old No.24, New No.44, Stanes Road 4th Street Tirupur, TN-641 602.

5. NCLT Chennai-Court-1 Rep. by its Registrar II Floor, Corporate Bhawan Beach Rd, Mannadi, George Town Chennai, Tamil Nadu 600 001.

6. Raghavendran Resolution Professional appointed by NCLT Having Office at Flat No.3, Dhruvatara Apartments 241, Dr.Rajendra Prasad Road, Tatabad Coimbatore-641 012.

7. V.Pandiselvi Advocate Commissioner appointed in Crl.MP No.12663/2022 on the files of CJM Court Tiruppur, 45/1, Annai Sathya Sri Balaji Nagar, Pattatharasi Annai Kovil (opp), Rakkiapalayam, Kangeyam Naad Tirupur-641 606.

8. Ministry Of Micro Small And Medium Enterprises Rep. By Secretary, Udyog Bhawan Rafi Marg, New Delhi, Delhi-110 001.

9. Union of India Rep. By Secretary Department of Financial Services Ministry of Finance 3rd Floor, Jeevan Deep Building, Sansad Marg New Delhi-110 001.

10.Reserve Bank Of India Rep. by the Executive Director Shahid Bhagat Singh Road Fort Mumbai 400 001.

11.State Of Tamil Nadu Rep. by its Secretary Department of Micro, Small & Medium Enterprises (MSME), Fort St.George Chennai-600 009.

Respondent(s) Prayer : Petition filed under Article 226 of the Constitution of India seeking a writ of Declaration a. to declare that the Petitioner is an MSME within the meaning of the MSMED Act of 2006 and notification dated 29.05.2015 issued by the Central Government under Section 9 thereof, as also the circulars and guidelines issued by the Reserve Bank of India under Section 10 thereof, which provides for a mechanism of resolution of stress and that no proceedings for recovery under the SARFAESI Act, RDB Act or the IBC will lie, in as much as the MSMED Act being a special law qua the aforesaid Acts, and a later law in relation to the RDB Act and the SARFAESI Act, its provisions will prevail over the aforesaid enactments;

b. to declare that the MSME Act in so far as it has not created a Special forum/tribunals to enforce the inter-se rights and obligations/

remedies, which it has created in addition to those rights/obligations/ remedies recognized by the common law, the jurisdiction of the Civil Court is not ousted, for is is impossible to oust the jurisdiction of the Civil Court without providing for an alternative forum/tribunal to adjudicate the inter se disputes between parties who are governed by the Act;

c) to declare that Sections 5 and 6 of the SARFAESI Act of 2002 is unconstitutional and void in as much as it permits alienation of the properties of a secured debtor/ borrower without notice him, nay entirely behind his back, thus impinging Articles 14, 19 and 21 of the Constitution;

d) to declare that the entire proceedings at the hands of the Respondent Nos.3 and 4, 5 and 7, Authorised Officers of the State Bank of India, the Chief Judicial Magistrate, Tiruppur the Ld. NCLT-1 Chennai under Section 13(2), 13(4) and 14 of the SARFAESI, Security Interest (Enforcement) Rules, and under Section 7 of the IBC Act are illegal and void and to grant a consequential writ in the nature of certiorari or any other appropriate writ or order quashing and setting aside the same;

e) to call for the entire records and proceedings at the hands of the Authorised Officers as well as the Chief Judicial Magistrate, Tiruppur, leading to the order dated 20.01.2023 in Crl. MP No.12663 of 2022 and to quash and set aside the same as being without jurisdiction, in violation of fundamental principles of judicial procedure and most importantly, being in violation of Articles 14, 19 and 21 of the Constitution;

f) directing respondent no.1, Board of Directors of the State

Bank of India to constitute a committee for the resolution of the stress of the unit of the instant petitioner's Company, an MSME as contemplated in paragraph 2 of the notification dated 29.05.2015 issued under the MSMED Act, and further to direct the Committee to resolve the stress in accordance with the said notification and such other relevant notifications/regulations framed by the RBI; and g) restraining and prohibiting the Respondent bank from initiating or continuing any measures for recovery under any law, in particular, Sections 5.5, 6, 13 and 14 of SARFAESI Act and the rules made thereunder, and the Recovery of Debts and Bankruptcy Act, IBC Act and in particular the sale scheduled for 24.12.2024 in furtherance of sale notice.

For Petitioner(s):

No Appearance For Respondent(s): Mr. M.L.Ganesh for R1 to R4 Mr. K.Kumaran Government Pleader for R11

ORDER

(Order of the Court was made by the Hon'ble Chief Justice) None appears for petitioner.

2. Petition is dismissed for non-prosecution. There shall be no order as to costs. Consequently, the interim applications are also dismissed.

(SUSHRUT ARVIND DHARMADHIKARI,CJ) (G.ARUL MURUGAN,J) 29.06.2026 kpl To

1. Board of Directors of State Bank of India Rep. by its Managing Director & CEO State Bank Bhawan, M.C. Road Nariman Point, Mumbai Maharashtra-400 021.

2. Chairperson Committees for Stressed Micro, Small and Medium Enterprises State Bank Of India Rep. By Its Managing Director & CEO State Bank Bhawan, M.C. Road Nariman Point, Mumbai Maharashtra-400 021.

3. The Authorized Officer State Bank of India, Stressed Assets Management Branch 112, Raja Palaza Avinashi Road, Coimbatore-641 037.

4. The Authorized Officer State Bank of India Special Commercial Branch Old No.24, New No.44, Stanes Road 4th Street Tirupur, TN-641 602.

5. NCLT Chennai-Court-1 Rep. by its Registrar II Floor, Corporate Bhawan Beach Rd, Mannadi, George Town Chennai, Tamil Nadu 600 001.

6. Ministry Of Micro Small And Medium Enterprises Rep. By Secretary, Udyog Bhawan Rafi Marg, New Delhi, Delhi-110 001.

7. Union of India Rep. By Secretary Department of Financial Services Ministry of Finance 3rd Floor, Jeevan Deep Building, Sansad Marg New Delhi-110 001.

8. Reserve Bank Of India Rep. by the Executive Director Shahid Bhagat Singh Road Fort Mumbai 400 001.

9. State Of Tamil Nadu Rep. by its Secretary Department of Micro, Small & Medium Enterprises (MSME), Fort St.George Chennai-600 009.

THE HON'BLE CHIEF JUSTICE AND G.ARUL MURUGAN,J.

(kpl) 29.06.2026