R.A.Raghunath v. Union Of India

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated: 15/12/2016 C O R A M The Honourable Mr.Justice S.Manikumar and The Honourable Mr.Justice M.Govindaraj Writ Petition No.32926 of 2014 R.A.Raghunath ...

Petitioner Vs

1. Union of India rep. By the Secretary to Government Ministry of Finance Department of Economic Affairs (Banking Division) North Block New Delhi.

2. The Governor Reserve Bank of India Central Office Mumbai.

3. The Authorised Officer Bank of India Asset Recovery Branch Old No.17 New No.30 Errabalu Street Chennai 600 001.

...

Respondents Prayer:

Petition filed under Article 226 of the Constitution of India praying for the issuance of a writ of declaration declaring Section 2 (1) (o) of the SARFAESI 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 abinitio, illegal and unconstitutional and consequently forbear the third respondent Bank from continuing the proceedings initiated under the provisions of SARFAESI Act,

2002 as against the petitioner with reference to the subject property more fully set out in the petition schedule. For petitioner ...

Mr.S.Patrick for Mr.A.Swaminathan For respondents ...

Mr.S.Vasudevan for R.3 - - - - - -

O R D E R

Writ petitioner has sought for a declaration, declaring Section 2 (1) (o) of the SARFAESI 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 abinitio, illegal and unconstitutional and consequently, forbear the third respondent Bank from continuing the proceedings initiated under the provisions of SARFAESI Act, 2002 as against the petitioner, with reference to the subject property more fully set out in the petition schedule.

2. Hon'ble Apex Court in Keshavlal Khemchand and Sons Private Limited and Others Vs. Union of India and Others reported in (2015) 4 SCC - 770, has upheld the validity of the above said provision. However, Mr.S.Patrick, representing the learned counsel on record submitted that the instant writ petition has become infructuous.

In the light of the above judgment, it is not so.

3. Following the judgment of the Hon'ble Supreme Court, this writ petition is dismissed. No costs. Consequently, the connected Miscellaneous Petitions are closed. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar mvs

To

1. The Secretary to Government Union of India Ministry of Finance Department of Economic Affairs (Banking Division) North Block New Delhi.

2. The Governor Reserve Bank of India Central Office Mumbai.

3. The Authorised Officer Bank of India Asset Recovery Branch Old No.17 New No.30 Errabalu Street Chennai 600 001.

+1cc to Mr.S. Vasudevan, Advocate, S.R.No.73877 Writ Petition No.32926 of 2014 pvs(CO) rs(05/01/2017)