M/S. Radiant Filters v. Union Of India,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.04.2015
CORAM
THE HON'BLE MR. JUSTICE SATISH K. AGNIHOTRI AND THE HON'BLE MR.JUSTICE M. VENUGOPAL W.P. No.30855 of 2014 and M.P. Nos.1 & 2 of 2014 Radiant Filters Engineering Pvt. Ltd.
represented by its Managing Director Pranav Mehta No.148/2, Panamkattupakkam Village Melakottaiyur (PO) Via Melakottaiyur Chennai 600 127 Petitioner vs.
Union of India represented by the Secretary to Government Ministry of Finance Department of Economic Affairs Room No.34-C New Delhi 110 001 - India The Regional Manager Regional Office Indian Overseas Bank Anna Salai Chennai 600 002 The Authorised Officer Indian Overseas Bank Texco Srinagar Colony Branch 6a South Mada Street Srinagar Colony Saidapet, Chennai 600 015 The Governor Reserve Bank of India Central Office Mumbai Respondents
Writ Petition filed under Article 226 of the Constitution of India seeking a writ of declaration declaring the provisions of Section 2(1)(o) of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002, as arbitrary, unconstitutional and opposed to public policy, null and void and the same being ultra vires the Constitution of India 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 the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as against the petitioner herein with reference to the subject property morefully set out in the petition schedule.
For petitioner Mr. S.M. Deenadayalan For RR 2 & 3 Mr. F.B. Benjamin George Standing Counsel
ORDER
The question involved in this writ petition, 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, (for short "the SARFAESI Act") 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.
Seemingly, the very same provision of the SARFAESI Act was put to challenge before the Gujarat High Court as well and the Gujarat High Court also upheld the constitutional validity of the said provision.
The aforesaid orders passed by this Court as well as Gujarat High Court was taken on appeal before the Supreme Court and the Supreme Court, in Keshavlal Khemchand and Sons Pvt. Ltd. and Others vs. Union of India [W.P. (Civil) No.901 of 2014, etc. batch], has upheld the constitutional validity of the said provision vide judgment dated 28.01.2015.
2014(4) MLJ 257
In view of the above, this writ petition is liable to be dismissed and the same is accordingly dismissed. No costs. Connected Miscellaneous Petitions are closed. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar cad To The Secretary to Government Union of India Ministry of Finance Department of Economic Affairs Room No.34-C New Delhi 110 001 - India The Regional Manager Regional Office Indian Overseas Bank Anna Salai Chennai 600 002 The Authorised Officer Indian Overseas Bank Texco Srinagar Colony Branch 6a South Mada Street Srinagar Colony Saidapet, Chennai 600 015 The Governor Reserve Bank of India Central Office Mumbai + 1 cc to Mr.S.M. Deenadayalan, Advocate SR.19228 + 1 cc to Mr.F.B. Benjamin, Advocate SR.19355 KU(CO) EU 20 .04.2015 W.P. No.30855 of 2014