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Madras High CourtWP/26233/2016disposed of

State Bank Of India v. The Executive Magistrate &

2016-07-27Honourable Mr Justice Huluvadi G. Ramesh,Honourable Mr Justice M.V. Muralidaran2 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 27.07.2016

CORAM

THE HONOURABLE MR.JUSTICE HULUVADI G.RAMESH AND THE HONOURABLE MR.JUSTICE M.V.MURALIDARAN W.P.No.26233 of 2016 State Bank of India rep by its Authorised Officer Stressed Asset Management Branch Avinashi Road, No.1112, Raja Plaza Coimbatore 641 001 ..

Petitioner -vsThe Executive Magistrate & The District Collector Collectorate Coimbatore ..

Respondent Petition under Article 226 of the Constitution of India, praying for the issue of a Writ of Mandamus, directing the respondent to take necessary action under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act within a specified period, on the basis of the petition dated 25.06.2015 filed under Section 14 of the SARFAESI Act to render assistance for taking possession of the properties morefully described in the Annexure in the petition dated 25.06.2015 submitted to the respondent.

For Petitioner ::

Mr.S.Sethuraman For Respondent ::

Mrs.A.Srijayanthi Special Government Pleader

ORDER

(Order of the Court was delivered by HULUVADI G.RAMESH, J.) The petitioner-Bank has sought for issuance of a writ of mandamus, directing the respondent/the Executive Magistrate & the District Collector to take necessary action under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act within a specified period, on the basis of the petition dated 25.06.2015 seeking to render assistance for taking possession of the properties morefully described in the Annexure in the petition dated 25.06.2015 submitted to the respondent.

2. Heard the learned counsel for the petitioner and the learned Special Government Pleader taking notice on behalf of the respondent. https://hcservices.ecourts.gov.in/hcservices/

3. It appears that one M/s Lavanya Gold Jewel India Limited, Coimbatore had availed certain credit facilities from the commercial branch of State Bank of India, Coimbatore to the tune of Rs.65 crores and had mortgaged several properties situated in and around Coimbatore belonging to the directors/guarantors, as shown in the Annexure to the petition, as security. Thereafter, on the default committed by the borrowers in the repayment of dues, the account was classified as Non-Performing Asset and the same was transferred to the petitioner-Bank. Accordingly, a notice of demand under Section 13

(2) of the SARFAESI Act was issued on 17.9.2013 calling upon the borrowers/guarantors to pay a sum of Rs.62,33,38,102/- with interest as on 16.9.2013 within sixty days from the receipt of the notice. Since the borrowers/guarantors did not take any steps to repay the dues within the statutory period of sixty days, the petitioner Bank was constrained to issue the possession notice under Section 13(4) of the SARFAESI Act on 6.6.2014 and also took symbolic possession of the properties after publishing the possession notice in the English and vernacular language newspapers on 9.6.2014. Even after the receipt of the said possession notice, the borrowers/guarantors have failed to settle the dues. Hence the petitioner Bank has moved a petition under Section 14 of the SARFAESI Act before the respondent-Executive Magistrate & District Collector for taking physical possession of the properties morefully described in the annexure to the petition dated 25.6.2015 and since the said petition is pending consideration, the petitioner Bank is before this Court.

4. Considering the nature of relief sought for in the writ petition, we direct the respondent-Executive Magistrate & District Collector, Coimbatore to consider the petition dated 25.6.2015 filed by the petitioner Bank under Section 14 of the SARFAESI Act for taking physical possession of the properties, morefully described in the annexure to the said petition, and to pass necessary orders in accordance with law at the earliest, after affording opportunity to the concerned parties. The writ petition is disposed of accordingly. No costs.

Sd/- Asst.Registrar /true copy/ Sub Asst. Registrar To

1. The Executive Magistrate & District Collector Collectorate, Coimbatore.

+1 cc to Govt.Pleader,sr.42928 +1 cc to Mr.S.Sethuraman,advocate,sr.42580.

pa(co0 krd 16/8 W.P.No.26233 of 2016 https://hcservices.ecourts.gov.in/hcservices/