Shree Velu Builders P Limited v. Union Bank Of India

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 25.09.2025

CORAM

THE HON'BLE MR.MANINDRA MOHAN SHRIVASTAVA, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE G.ARUL MURUGAN

1. Shree Velu Builders P Limited CIN No. U45201TN994PTC028985 And Udyam Regn No. UDYAM TN 02-0120914 Dated 20.04.2022 Represented By Director NVK Velan, Registered Office Block 2 Alaka Palazzo, No.4/219 Poonamallee High Road, Kattupakam Chennai 600 056.

Petitioner Vs

1. Union Bank Of India Board Of Directors/Authorised Offier, Asset Recovery Branch No.168, Second Floor Linghi Chetty Street, Parrys, Chennai 600 001.

2.Ministry Of Finance Through its Secretary, Department of Financial Services, Government of India, 6A, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi- 110001.

3.Reserve Bank Of India Through its Governor, Central Office Building,

Shahid Bhagat Singh Road, Fort, Mumbai 400 001.

4.Ministry of MSME Through its Secretary, Government of India Room No.169, Udyog Bhawan, Rafi Marg, New Delhi 110011 Respondents Prayer: Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus calling for the records pertaining to the impugned Sale Notice dated 31.07.2025 issued by the respondent bank, quash the same, and consequently direct the respondent to place the petitioner's loan account before the Committee for Stressed MSMEs as mandated under the Framework for Revival and Rehabilitation of MSMEs dated 03.06.2025 and in accordance with the binding directions of this Court and the Supreme Court.

For Petitioner :

Mr.C.Prasanna Venkatesh, Senior Counsel for Ms.Jayanthi For Respondents :

Mrs.Ananda Gomathy For the first respondent Mr.M.Sathyan, ACGSC For respondents 2 and 4

ORDER

(Order of the Court was made by the Hon'ble Chief Justice) This petition is filed seeking issuance of a writ of Mandamus, directing the respondent bank to refer the petitioner's loan account to the Committee for Stressed MSMEs, as per the Reserve Bank of India's guidelines.

2. We find that the bank has already taken measures against the petitioner, legality and validity of which is under challenge before the Debts Recovery Tribunal, (for short, 'the DRT').

3. Learned counsel for the petitioner would fairly submit that even this issue has been raised before the DRT, that without sending the case of the petitioner for consideration of the committee as per RBI guidelines, measures could not have been taken.

4. Taking into consideration the aforesaid aspects, we are not inclined to open a parallel proceedings during the pendency of the case

before the DRT. It goes without saying that the issue which has been raised before this Court should also be decided by the DRT.

5. The petition is closed. There will be no order as to costs. Consequently, WMP Nos.41479, 41470, 41472, 41475 of 2025 are closed.

(MANINDRA MOHAN SHRIVASTAVA, CJ.) (G.ARUL MURUGAN, J.) 25.09.2025 Index : Yes/No : Yes/No tar

To 1.The Board Of Directors/Authorised Officer, Union Bank Of India Asset Recovery Branch No.168, Second Floor Linghi Chetty Street, Parrys, Chennai 600 001.

2.The Secretary Ministry Of Finance Department of Financial Services, Government of India, 6A, 3rd Floor, Jeevan Deep Building, Sansad Marg, New Delhi- 110001.

3.The Governor, Reserve Bank Of India Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai 400 001.

4.The Secretary, Ministry of MSME Government of India Room No.169, Udyog Bhawan, Rafi Marg, New Delhi 110011

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

(tar) 25.09.2025